On May 10, 2022 Cumberland Pharmaceuticals Inc. (NASDAQ: CPIX), a specialty pharmaceutical company reported that the Company’s product portfolio of FDA-approved brands delivered combined revenues of $11.2 million during the first quarter of 2022, – which is a 6% increase over the prior year period (Press release, Cumberland Pharmaceuticals, MAY 10, 2022, View Source [SID1234614088]). Adjusted earnings for the quarter were $0.5 million, or $0.03 a share. The company ended the first quarter with $96.7 million in total assets, $55.9 million in total liabilities, and $41.0 million of shareholders’ equity. Cumberland will report its first quarter 2022 financial results and provide a company update via a conference call and live internet webcast today at 4:30 p.m. Eastern Time.
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At the start of the first quarter, Cumberland announced its acquisition of the oncology-supportive drug Sancuso from the U.S. subsidiary of Kyowa Kirin, Inc., a Japan-based specialty pharmaceutical company. Sancuso is the first and only FDA-approved prescription patch that prevents nausea and vomiting in cancer patients receiving certain types of chemotherapy treatment. Through the acquisition, Cumberland obtained full commercial responsibility for Sancuso in the U.S., including its marketing, promotion, distribution and manufacturing. Cumberland formed a new sales division, Cumberland Oncology, to support the brand.
On Monday, May 9, 2022, Cumberland announced that it has entered into a co-promotion agreement with Verity Pharmaceuticals to bring Sancuso to more patients across the U.S. Verity will feature Sancuso through its national oncology sales organization, covering a majority of the U.S. market for an initial three-year term.
Cumberland also announced several new partnerships for its Vibativ product during the first quarter. Vibativ is an antibiotic used to treat patients with pneumonia and serious skin infections resulting from gram-positive bacteria:
In March of 2022, the company announced a new partnership with Saudi Arabia-based Tabuk Pharmaceutical Manufacturing Company to introduce Vibativ in the Middle East. The arrangement provided Tabuk exclusive rights to distribute Vibativ in Saudi Arabia and Jordan, with the option to expand into other countries in the region. Tabuk is a fully owned subsidiary of publicly traded Astra Industrial Group, a leading industrial conglomerate in Saudi Arabia. Tabuk is a well-respected pharmaceutical company with a strong distribution network throughout the Middle East.
Cumberland also announced the launch of Vibativ in Puerto Rico, again through a partnership with Verity Pharmaceuticals, which has a particular strength and experience in the Puerto Rican market.
The company continues to enroll patients in the three Phase II clinical programs that it is sponsoring. These studies are evaluating its ifetroban product candidate for:
Duchenne Muscular Dystrophy, a fatal, genetic neuromuscular disease;
Systemic Sclerosis, a debilitating autoimmune disorder; and
Aspirin-Exacerbated Respiratory Disease, a severe form of asthma.
Cumberland is also designing a Phase II study to evaluate the use of ifetroban to treat patients with Progressive Fibrosing Interstitial Lung Diseases. The company is currently preparing an application to the FDA to support the new program.
"We continue to seek opportunities to expand the use of our existing brands, while also building our portfolio of differentiated products," said A.J. Kazimi, CEO of Cumberland Pharmaceuticals. "We made significant progress toward that goal during the first quarter and are particularly encouraged by the addition of Sancuso. We believe in the product’s potential to help more cancer patients and expect it to be a meaningful contributor to our business."
To participate in today’s call, 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 7574078. Both the live webcast and rebroadcast can be accessed via Cumberland’s website at View Source
FINANCIAL RESULTS:
Net Revenue: For the three months ended March 31, 2022, net revenues from continuing operations were $11.2 million.
Net revenue by product for the first quarter of 2022, included $3.9 million for Kristalose, $3.4 million for Sancuso, $2.5 million for Vibativ and $1.0 million for Caldolor.
Operating Expenses: Total operating expenses for the first quarter were $12.5 million.
Adjusted Earnings: Adjusted earnings for the first quarter of 2022 was $0.5 million, or $0.03 per share.
The adjusted earnings calculation does not include the benefit of the $0.9 million of Vibativ cost of goods, which were received with the product acquisition. It also does not include the benefit of the $0.4 million of Sancuso cost of goods, which were received with that product’s acquisition.
Cash Flow: Cash flow from operations for the quarter ended March 31, 2022 was $(0.15) million.
Balance Sheet: At March 31, 2022, Cumberland had $96.7 million in total assets including $17.3 million in cash and cash equivalents.
Total liabilities were $55.9 million, including $20 million outstanding on the Company’s revolving line of credit. Total shareholders’ equity was $41 million.