NASHVILLE, Tenn., Feb. 29, 2012 /PRNewswire/ -- Cumberland Pharmaceuticals Inc. (NASDAQ: CPIX), a specialty pharmaceutical company focused on hospital acute care and gastroenterology, today announced 2011 annual financial results.
Net Revenue: For the year ended December 31, 2011, net revenue increased to $51.1 million, up 11.5% compared with $45.9 million for 2010.
For the three months ended December 31, 2011, net revenue was $13.0 million, up from $12.8 million in the prior year period.
Operating Expenses: For the year ended December 31, 2011, total operating expenses were approximately $41.3 million, compared with $39.4 million for 2010. The difference was primarily a result of increased cost of products sold, research and development and general and administrative expenses, partially offset by lower selling and marketing expenses.
Total operating expenses for the three months ended December 31, 2011 were $11.3 million compared to $10.6 million the prior year period. Increases in cost of products sold, research and development expenses and general and administrative expenses were partially offset by a decrease in selling and marketing expenses compared to the prior year.
Net Income: Net income attributable to common shareholders for the year ended December 31, 2011 increased more than 130% to $5.7 million, or $0.28 per diluted share, compared to $2.5 million, or $0.12 per diluted share, for 2010.
Net income attributable to common shareholders for the three months ended December 31, 2011, was $0.9 million, or $0.04 per diluted share, similar to the same period in 2010.
Balance Sheet: As of December 31, 2011, Cumberland had $70.6 million in cash and cash equivalents, compared to $65.9 million at the end of 2010. Total assets at December 31, 2011, were $95.5 million compared to $92.1 million in 2010. At December 31, 2011, Cumberland had total debt of $4.9 million, down from $7.2 million at the end of 2010. Shareholders' equity increased to $82.8 million at the end of 2011 from $77.7 million for the prior period.
"We are pleased to have delivered strong revenue and earnings growth and to have achieved our revenue guidance during 2011," said A.J. Kazimi, Chief Executive Officer of Cumberland Pharmaceuticals. "2011 milestones for Cumberland included the approval and launch of the next generation Acetadote®, the acquisition of the worldwide rights to Kristalose®, as well as our addition of a fourth product, Hepatoren, which we believe is an excellent complement to our current offerings," said Kazimi. "In addition to these milestones, we continued to focus on the incremental growth of our brands including new international partnerships and opportunities for new indications."
Cumberland is introducing earnings guidance for 2012. The Company expects to see diluted earnings to be in the range of $0.32 to $0.36 per share, reflecting growth of approximately 15-30%. This guidance reflects a continuation of existing trends as well as the company's expectation for the implementation of its new commercial strategy. This guidance represents the Company's best estimate of future results, which may be affected by factors described below in "Forward-Looking Statements."
In January 2011, the U.S. Food and Drug Administration (FDA) approved Cumberland's supplemental new drug application (sNDA) for a new formulation of Acetadote, which was the result of a phase IV commitment the Company made to the FDA upon receipt of initial marketing approval of the product. The new formulation does not contain Ethylene diamine tetracetic acid or any other stabilization or chelating agents and is free of preservatives. Cumberland launched the next generation product, which replaced the previously marketed formulation, in the first quarter of 2011 and has worked to ensure widespread distribution and transition to the next generation product.
In February 2012, Cumberland received a Notice of Allowance from the United States Patent and Trademark Office relating to its patent application for its new formulation of Acetadote (acetylcysteine) Injection, which is used to treat acetaminophen poisoning. The new formulation was FDA approved in 2011 and listed in the "Orange Book," the FDA's official register of approved pharmaceutical products. Once issued, the patent will expire in at least 2025. This composition of matter patent represents another significant milestone for Cumberland and its Acetadote brand.
Cumberland reached an agreement in November 2011 to acquire the remaining rights associated with the Kristalose brand, including the trademark and the FDA approved registration for the product from Mylan Pharmaceuticals. Cumberland will provide a royalty on product sales in exchange for these assets.
An exclusive agreement was reached with Harbin Gloria, a China based pharmaceutical company, for the commercialization of Caldolor and Acetadote in China. Under the terms of the agreement, Harbin Gloria will have exclusive rights to register and commercialize both products in China. In exchange for the license to the product, Cumberland will receive upfront and milestone licensing payments and royalties on the product sale.
The application for regulatory approval of Caldolor for fever in Canada by Cumberland's partner Alveda Pharma, was approved in December 2011.
Conference Call and Webcast
A conference call and live Internet webcast will be held on Wednesday, February 29, 2012 at 5:00 p.m. Eastern Time to discuss the Company's fourth quarter 2011 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 50392851. 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 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, and Kristalose® (lactulose) for Oral Solution, a prescription laxative. Cumberland is dedicated to providing innovative products that improve quality of care for patients. For more information, please visit the Company's website at www.cumberlandpharma.com.
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