NASHVILLE, Tenn., Nov. 1, 2016 /PRNewswire/ -- Cumberland Pharmaceuticals Inc. (NASDAQ: CPIX), a specialty pharmaceutical company focused on hospital acute care and gastroenterology, today announced third quarter 2016 financial results with Net Revenues of $8.8 million and Adjusted Earnings of $1.0 million or $0.06 per share. Earnings prior to adjustments were $0.1 million or $0.01 per share.
As of September 30, 2016, the Company had approximately $91 million in Total Assets including $50 million in cash and marketable securities. Total Liabilities were approximately $17 million and Total Shareholder's Equity was just under $75 million. Cumberland also had approximately $43 million in tax net operating loss carryforwards, resulting from the prior exercise of stock options.
QUARTER HIGHLIGHTS:
- Launched Ethyol®, an FDA approved cytoprotective drug and Cumberland's first oncology product, in the United States.
- Initiated a fourth ifetroban clinical program, with FDA clearance for an IND - to develop Portaban for the treatment of portal hypertension.
- Welcomed Caroline Young, former president of the Nashville Health Care Council, to the Company's Board of Directors.
"We have been busy putting the pieces in place to build our sales momentum while expanding our clinical pipeline and maintaining a strong financial position," said A.J. Kazimi, Chief Executive Officer of Cumberland Pharmaceuticals. "We entered the second half of 2016 with renewed excitement and remain focused on our key operating objectives which we believe will take the company to the next level."
RECENT DEVELOPMENTS:
Ethyol®
Cumberland launched Ethyol® (amifostine) for Injection in the United States at a National Meeting of the Company's sales organization in September. Ethyol is an FDA approved hospital product used to support the care of oncology patients. It is a cytoprotective drug indicated to support select patients undergoing radiation treatment as well as those undergoing chemotherapy for certain cancers. At the National Sales Meeting, Cumberland's hospital sales organization was trained and prepared to reintroduce branded amifostine to a new generation of oncologists. For the last several years, no company has been educating physicians on the benefits of this product for their patients.
This is the first product to be licensed by Cumberland from Clinigen Group plc under the Strategic Alliance entered into last year and also Cumberland's first oncology product. Under the terms of the Ethyol license agreement, Cumberland is responsible for all distribution, marketing, promotion, and medical support of the product in the U.S.
Portaban
Cumberland announced its fourth clinical development program for ifetroban to develop Portaban, an oral form of ifetroban, for the treatment of portal hypertension associated with liver disease. Portal hypertension, a complication of liver cirrhosis, is an increase in the blood pressure within the portal venous system. This increased pressure in the portal veins may lead to the development of large, swollen veins which can rupture and bleed, resulting in potentially life-threatening complications. Preclinical studies have shown that ifetroban can reduce portal pressure, inflammation, and fibrosis in multiple models of liver injury.
The U.S. Food and Drug Administration has cleared Cumberland's investigational new drug application, or IND, for a Phase II clinical study of Portaban. The Company is in the process of preparing for the study, expected to begin later this fall.
FINANCIAL RESULTS:
Net Revenue: For the three months ended September 30, 2016, net revenues were $8.8 million, compared to $7.9 million for the prior year period. Net revenue by product for the three months ended September 30, 2016, included $3.7 million for Kristalose®, $1.8 million for Acetadote®, including $1.2 million for the Company's Authorized Generic, $1.4 million for Caldolor®, $0.8 million for Omeclamox®-Pak, $0.5 million for Vaprisol®, and $0.5 million for Ethyol®.
For the nine months ended September 30, 2016, net revenues were $23.9 million compared to $25.5 million for the nine months ended September 30, 2015.
Operating Expenses: Total operating expenses for the three months ended September 30, 2016 were $8.7 million, compared to $7.6 million during the prior year period. Total operating expenses for the first nine months of 2016 were $24.4 million similar to $24.5 million for 2015.
Earnings: Net income for the third quarter of 2016 was $0.1 million and $0.01 per diluted share, similar to the prior year period. Adjusted Earnings for the third quarter were $1.0 million or $0.06 per share, compared to $0.7 million or $0.04 per share for the prior year period. The definition and reconciliation of Adjusted Earnings to net income is provided in this release.
Balance Sheet: At September 30, 2016, Cumberland had $50.1 million in cash and marketable securities, with approximately $35.5 million in cash and equivalents and $14.6 million in marketable securities. Total Assets at September 30, 2016 were $91.1 million. Total Liabilities were $16.7 million, including $3.7 million outstanding on our revolving line of credit, resulting in Total Shareholder's Equity of $74.5 million. Cumberland also had approximately $43 million in off-balance sheet tax net operating loss carryforwards, resulting from the prior exercise of stock options.
Conference Call and Webcast
A conference call and live Internet webcast will be held on Tuesday, November 1, 2016 at 4:30 p.m. Eastern Time to discuss the Company's third quarter 2016 financial results. To participate in the call, please dial 877-303-1298 (for U.S. callers) or 253-237-1032 (for international callers). A rebroadcast of the teleconference will be available for one week and can be accessed by dialing 855-859-2056 (for U.S. callers) or 404-537-3406 (for international callers). The Conference ID for the rebroadcast is 99386514. The live webcast and rebroadcast can be accessed via Cumberland's website at http://investor.shareholder.com/cpix/events.cfm.
About Cumberland Pharmaceuticals
Cumberland Pharmaceuticals Inc. is a specialty pharmaceutical company focused on acquisition, development, and commercialization of branded prescription products. The Company's primary target markets include hospital acute care and gastroenterology. Cumberland's six marketed products include Acetadote® (acetylcysteine) Injection for the treatment of acetaminophen poisoning, Caldolor® (ibuprofen) Injection, for the treatment of pain and fever, Kristalose® (lactulose) for Oral Solution, a prescription laxative, Vaprisol® (conivaptan) Injection, for the treatment of hyponatremia and Omeclamox-Pak® for the treatment of H. pylori infection and duodenal ulcer disease, and Ethyol® (amifostine) for Injection, for the treatment of oncology patients.
Cumberland is developing Hepatoren® (ifetroban) Injection for the treatment of Hepatorenal Syndrome, Boxaban® (ifetroban) Oral Capsule for the treatment of Aspirin-Exacerbated Respiratory Disease, Vasculan (ifetroban) Oral Capsule for the treatment of systemic sclerosis, and Portaban, for the treatment of portal hypertension.
Cumberland is dedicated to providing innovative products that improve quality of care for patients. For more information on Cumberland's approved products, including full prescribing information, please visit the individual product websites, links to which can be found on the Company's website www.cumberlandpharma.com.
About Acetadote® (acetylcysteine) Injection
Acetadote, administered intravenously within 8 to 10 hours after ingestion of a potentially hepatotoxic quantity of acetaminophen, is indicated to prevent or lessen hepatic injury. Used in the emergency department, Acetadote is approved in the United States to treat overdose of acetaminophen, a common ingredient in many over-the-counter medications. Acetadote is contraindicated in patients with hypersensitivity or previous anaphylactoid reactions to acetylcysteine or any components of the preparation. Serious anaphylactoid reactions, including death in a patient with asthma, have been reported in patients administered acetylcysteine intravenously. Acetadote should be used with caution in patients with asthma or where there is a history of bronchospasm. The total volume administered should be adjusted for patients weighing less than 40 kg and for those requiring fluid restriction. To avoid fluid overload, the volume of diluent should be reduced as needed. If volume is not adjusted, fluid overload can occur, potentially resulting in hyponatremia, seizure, and death. For full prescribing information, visit www.acetadote.com.
About Caldolor® (ibuprofen) Injection
Caldolor is indicated in adults and pediatric patients for the management of mild to moderate pain and management of moderate to severe pain as an adjunct to opioid analgesics, as well as the reduction of fever. It was the first FDA-approved intravenous therapy for fever. Caldolor is contraindicated in patients with known hypersensitivity to ibuprofen or other NSAIDs, patients with a history of asthma or other allergic type reactions after taking aspirin or other NSAIDs. Caldolor is contraindicated for use during the peri-operative period in the setting of coronary artery bypass graft (CABG) surgery. Caldolor should be used with caution in patients with prior history of ulcer disease or GI bleeding, in patients with fluid retention or heart failure, in the elderly, those with renal impairment, heart failure, liver impairment, and those taking diuretics or ACE inhibitors. Blood pressure should be monitored during treatment with Caldolor. For full prescribing information, including boxed warning, visit www.caldolor.com.
About Kristalose® (lactulose) Oral Solution
Kristalose is indicated for the treatment of acute and chronic constipation. It is a unique, proprietary, crystalline form of lactulose, with no restrictions on length of therapy or patient age. Initial dosing may produce flatulence and intestinal cramps, which are usually transient. Excessive dosage can lead to diarrhea with potential complications such as loss of fluids, hypokalemia, and hypernatremia. Nausea and vomiting have been reported. Use with caution in diabetics. Kristalose is contraindicated in patients who require a low-galactose diet. Elderly, debilitated patients who receive lactulose for more than six months should have serum electrolytes (potassium, chloride, carbon dioxide) measured periodically. For full prescribing information, visit www.kristalose.com.
About Omeclamox®-Pak (omeprazole, clarithromycin, amoxicillin)
Omeprazole is an antisecretory drug, which works by decreasing the amount of acid the stomach produces. Clarithromycin and amoxicillin are antibacterial drugs, which inhibit the growth of bacteria allowing the stomach lining to heal. Omeclamox-Pak is contraindicated in patients with a history of hypersensitivity to omeprazole, any macrolide antibiotic or penicillin. The safety and effectiveness of Omeclamox-Pak in the pediatric population has not yet been established. Omeclamox-Pak was approved by the U.S. Food and Drug Administration in 2011.
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