NASHVILLE, Tenn., Nov. 4, 2014 /PRNewswire/ -- Cumberland Pharmaceuticals Inc. (NASDAQ: CPIX), a specialty pharmaceutical company focused on hospital acute care and gastroenterology, today announced third quarter 2014 financial results.
SUMMARY FINANCIAL RESULTS: During the third quarter 2014, net revenues were $9.7 million, up nearly 50% from the prior year period. Operating cash flow was $4.0 million for the nine months ended September 30, 2014, as the Company managed expenses in line with revenue. Cumberland returned to profitability in 2014 with $1.8 million in net income during the first nine months of the year or $0.10 per diluted share.
As of September 30, 2014 the Company had over $54 million in cash and investments, approximately $94 million in total assets and no debt. Cumberland also had $47.4 million in tax net operating loss carryforwards, resulting from the prior exercise of stock options.
SUMMARY QUARTER HIGHLIGHTS:
- Favorable Caldolor® clinical results were presented through a series of poster presentations at the American Anesthesiology 2014 Annual Meeting in New Orleans, Louisiana and at the American Academy of Pediatrics National Conference & Exhibition in San Diego, California.
- Kristalose® continued to experience a particularly strong year following the brand’s new positioning in early 2014.
- Continued diversification of revenue mix that included contributions from our two new products.
“We have been working hard to return Cumberland to growth and profitability during 2014 and are pleased to see our progress continue in the third quarter,” said A.J. Kazimi, Chief Executive Officer of Cumberland Pharmaceuticals. “Our strategy is to achieve the full potential of our commercial brands as we work towards a strong finish to the year.”
FINANCIAL RESULTS:
Net Revenue: For the three months ended September 30, 2014, net revenue was $9.7 million, compared to $6.5 million for the prior year period.
Net revenue by product for the three months ended September 30, 2014, was $4.0 million for Kristalose, $3.2 million for Acetadote®, including $1.4 million for the Company’s Authorized Generic, $1.0 million for Omeclamox®-Pak, $0.8 million for Caldolor and $0.7 million for Vaprisol®.
For the nine months ended September 30, 2014, net revenue was $27.6 million compared with $23.9 million for the nine months ended September 30, 2013.
Net revenue by product for the nine months ended September 30, 2014 was $10.9 million for Kristalose, $9.0 million for Acetadote, including $4.6 million for the Company’s Authorized Generic, $3.5 million for Omeclamox-Pak, $2.0 million for Caldolor and $2.0 million for Vaprisol.
Operating Expenses: Total operating expenses for the three months ended September 30, 2014 were $8.7 million, compared to $8.0 million during the prior year period.
For the nine months ended September 30, 2014, operating expenses were $25.0 million compared to $25.2 million for the prior year period. The decrease in operating expenses continues to be from the Company’s efforts to manage expenses in line with its revenues.
Net Income: Net income attributable to common shareholders for the three months ended September 30, 2014, was $0.7 million, or $0.04 per diluted share, compared to a loss of $(0.8) million or $(0.04) per diluted share during the prior year period.
For the nine months ended September 30, 2014, net income attributable to common shareholders was $1.8 million, or $0.10 per diluted share compared to a loss of $(0.6) million, or $(0.03) per diluted share during the prior year period.
Operating Cash Flow: Operating cash flows for the nine months ended September 30, 2014, was $4.0 million, compared to $0.9 million in the prior year period.
Balance Sheet: As of September 30, 2014, Cumberland had $54.3 million in cash and marketable securities, with approximately $39.6 million in cash and equivalents and $14.6 million in marketable securities. Total assets at September 30, 2014 were $93.9 million, and the Company had no debt at the end of the third quarter.
QUARTER HIGHLIGHTS
Caldolor®
Caldolor Pediatric Presentation
Data from Cumberland’s Caldolor pediatric fever studies reflect that treatment with intravenous ibuprofen was superior in reducing temperatures in hospitalized, febrile pediatric patients when compared to treatment with oral or suppository acetaminophen. This data was presented as part of the American Academy of Pediatrics National Conference & Exhibition in San Diego, California in October 2014. An abstract presentation entitled “A Multi-Center, Open-Label, Parallel, Active-Comparator Trial to Determine the Efficacy and Safety of Intravenous Ibuprofen in Pediatric Patients” was presented by Dr. Corrie Chumpitazi of Texas Children’s Hospital, Houston, Texas. The abstract was presented in the section of Emergency Medicine and again in the section on Pharmacy and Therapeutics.
The studies showed that when given intravenous ibuprofen hospitalized children experienced significant reduction in temperature compared to those receiving acetaminophen (oral or suppository). Both single and multiple does of IV ibuprofen were well tolerated and no significant adverse events were noted.
A poster presentation entitled “A Multi-Center, Randomized, Open-label, Parallel, Active-Comparator Trial to Determine the Efficacy and Safety of Intravenous Ibuprofen in Pediatric children” was also presented twice at this National Conference. The mission of the American Academy of Pediatrics is to attain optimal physical, mental, and social health and well-being for all infants, children, adolescents and young adults.
Caldolor Laparoscopic Cholecystectomy Presentation
Data from this Caldolor study reflects that treatment with preoperative intravenous ibuprofen improved overall quality of recovery in patients undergoing laparoscopic cholecystectomy surgery. These results were presented as a poster presentation entitled “The Effect of Preoperative Administration of IV Ibuprofen on Stress Response in Patients Undergoing Laparoscopic Cholecystectomy” in October 2014 at the American Anesthesiology 2014 Annual Meeting in New Orleans, Louisiana.
The investigator study was completed at the University of Medicine and Dentistry of New Jersey/Rutgers University and New York Methodist with Alex Bekker, MD, PhD, as the primary investigator. The study concluded that preoperative intravenous ibuprofen improved the overall quality of recovery including comfort, emotion and pain and reduced fatigue in the early postoperative period. Further, the study results indicated that preoperative administration of intravenous ibuprofen decreased the stress hormones catecholamines and cortisol postoperatively after laparoscopic cholecystectomy.
Cumberland Emerging Technologies
During the third quarter of 2014, Cumberland Pharmaceuticals received a grant from the National Institutes of Health through its Small Business Technology Transfer (“STTR”) grant program. The STTR program provides federal funding for innovative research and development by expanding partnerships between businesses and nonprofit research institutions. The STTR program provides for formal collaboration between a research institution and a business to ensure that the related science and technology results in the successful commercialization of the scientific innovations. The STTR grant is for approximately $0.2 million and is in conjunction with Vanderbilt University School of Medicine.
Conference Call and Webcast
A conference call and live Internet webcast will be held on Tuesday, November 4, 2014 at 4:30 p.m. Eastern Time to discuss the Company’s third quarter 2014 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 23979604. The live webcast and rebroadcast can be accessed via Cumberland’s website at http://investor.shareholder.com/cpix/events.cfm.
About Cumberland Pharmaceuticals Inc.
Cumberland Pharmaceuticals Inc. is a specialty pharmaceutical company focused on the acquisition, development and commercialization of branded prescription products. The Company’s primary target markets include hospital acute care and gastroenterology. Cumberland’s marketed products include Acetadote® (acetylcysteine) Injection for the treatment of acetaminophen poisoning, Caldolor® (ibuprofen) Injection, the first injectable treatment for pain and fever approved in the United States, 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 and duodenal ulcer disease. Cumberland is dedicated to providing innovative products that improve quality of care for patients. For more information on Cumberland, please visit the Company’s website www.cumberlandpharma.com.
About Acetadote
Acetadote is an antidote for acetaminophen overdose indicated to prevent or lessen hepatic injury after ingestion of a potentially hepatotoxic quantity of acetaminophen. 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
Caldolor is indicated 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 in adults. 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 asthma, urticarial, or 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
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.
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