{"id":526242,"date":"2021-08-10T16:10:48","date_gmt":"2021-08-10T20:10:48","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/cumberland-pharmaceuticals-reports-second-quarter-2021-financial-results-company-update\/"},"modified":"2021-08-10T16:10:48","modified_gmt":"2021-08-10T20:10:48","slug":"cumberland-pharmaceuticals-reports-second-quarter-2021-financial-results-company-update","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/cumberland-pharmaceuticals-reports-second-quarter-2021-financial-results-company-update\/","title":{"rendered":"Cumberland Pharmaceuticals Reports Second Quarter 2021 Financial Results & Company Update"},"content":{"rendered":"
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Year-to-date net revenues up 9.3%<\/h2>\n

PR Newswire<\/p>\n<\/p><\/div>\n

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\n NASHVILLE, Tenn.<\/span>, Aug. 10, 2021<\/span> \/PRNewswire\/ —\u00a0Cumberland Pharmaceuticals Inc.<\/b> (NASDAQ: CPIX), a specialty pharmaceutical company, today is providing a company update and second quarter 2021 financial results. Net revenues from continuing operations during the quarter were $9.1 million<\/span> and totaled $19.6 million<\/span> for the first half of 2021. The company also recorded an additional $500,000<\/span> in revenue during the second quarter and $1 million<\/span> year to date, associated with divested product rights for two brands it is no longer distributing.<\/p>\n

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\n \"Cumberland
\n <\/a>\n <\/p>\n<\/p><\/div>\n

While there was a slight decline in revenues during the second quarter 2021 compared to the prior year period, net revenues for the first half of 2021 were up 9.3% compared to the same period in 2020. The Company also posted year-to-date net income of $1.4 million<\/span> during the first half of 2021, compared to a loss of $2 million<\/span> during the prior year period. <\/p>\n

The Company’s financial position included $89 million<\/span> in total assets, with $26 million<\/span> in cash, $41 million<\/span> of total liabilities, and $48 million<\/span> of shareholders’ equity at the end of the quarter.<\/p>\n

“Cumberland<\/span> continued to face headwinds due to the pandemic, but we are fortunate to have a diversified product portfolio that helped us counter the negative effects on our business,” said A.J. Kazimi, Chief Executive Officer of Cumberland Pharmaceuticals. “We have adjusted our strategies and reinvented the way we operate in order to support our customers and the patients who can benefit from the delivery of our medicines.”<\/p>\n

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\n RECENT COMPANY DEVELOPMENTS:<\/u>
\n <\/b>\n <\/p>\n

\n ESG Report<\/b>\n <\/p>\n

In July 2021<\/span>, Cumberland<\/span> released its second annual Sustainability Report <\/i>(the “ESG Report”), which details the Company’s activities pertaining to environmental, social and governance (“ESG”) matters. After issuing an inaugural ESG report last year, the Company remains committed to sustainability and to maintaining transparency of its corporate operations. As the largest biopharmaceutical company founded and headquartered in the Mid-South, Cumberland<\/span> holds itself to the highest standards of ethical practices and understands the importance of recognizing and addressing the Company’s impact on its constituents, the community and the environment.<\/p>\n

The ESG Report notes that in 2020, Cumberland<\/span> provided nearly 2.5 million patient doses of its products, safely disposed of over 4,000 pounds of expired and damaged products and had no product recalls. The Company also had no brands that were listed on the U.S. Food and Drug Administration’s (“FDA”) MedWatch Safety Alerts for Human Medical Products, no brand issues that were identified by the FDA from their Adverse Event Reporting System and no clinical trials that were terminated due to failure to practice good clinical standards.<\/p>\n

The ESG Report also highlights several initiatives Cumberland<\/span> implemented as part of its commitment to delivering high-quality pharmaceutical products to improve patient care. For example, the Company continued a program to serialize all commercial products sold in the United States<\/span>, allowing it to track every unit distributed, which helps to prevent counterfeit drugs from entering the market under the Cumberland brand. In addition, through its coupon program, Cumberland<\/span> covers up to 90% of patient prescription costs for the Company’s gastrointestinal products.<\/p>\n

The ESG Report also highlights Cumberland’s<\/span> investment in its employees through continuing education programs, employee development initiatives and employee recognition awards. Cumberland’s<\/span> workforce is 46% women \u2013 and 18% of the Company’s employees are minorities.<\/p>\n

\n Vibativ\u00ae<\/sup> Case Studies<\/b>\n <\/p>\n

In June 2021<\/span>, Cumberland<\/span> released a series of case reports describing the effectiveness of Vibativ\u00ae<\/sup> (telavancin<\/i>) in treating secondary bacterial infections in COVID-19 patients \u2013 particularly those with other significant health problems, such as obesity, diabetes and heart disease. Cumberland’s<\/span> Vibativ product has been used across the country to help COVID-19 patients who develop secondary bacterial infections in their lungs. Vibativ is a patented, FDA-approved injectable anti-infective for the treatment of certain serious bacterial infections including hospital-acquired and ventilator-associated bacterial pneumonia that can result from COVID-19, flu and other infections. <\/p>\n

The Company compiled a dossier of patient case studies from across the country outlining several real-world instances where Vibativ effectively and safely treated the hospital-acquired bacterial pneumonia and ventilator-associated bacterial pneumonia resulting from MSSA and MRSA infections that developed in patients hospitalized with COVID-19.<\/p>\n

\n Hyponatremia Publication in Support of Vaprisol<\/b>
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\n \u00ae<\/sup>
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In late 2020, the Health Outcome Predictive Evaluation<\/i> (HOPE) COVID-19 Registry Analysis<\/i>, an international study of over 4,000 patients, found that patients hospitalized with COVID-19 had a high risk of developing hyponatremia. These COVID-19 patients also had a higher incidence of mortality due to their hyponatremia. The study results support the use of an intravenous vaptan to treat hyponatremia in critically ill patients afflicted with COVID-19. <\/p>\n

Hyponatremia, an imbalance of serum sodium to body water, is the most common electrolyte disorder among hospitalized patients. Cumberland’s<\/span> Vaprisol product is one of two branded prescription products indicated for the treatment of hyponatremia, and the only intravenously administered branded treatment.\u00a0 Vaprisol has a proven day one response to help normalize serum sodium levels in hyponatremic patients and move them out of the ICU as efficiently as possible. <\/p>\n

\n New Chief Financial Officer Appointment<\/b>\n <\/p>\n

On May 17, 2021<\/span>, Cumberland<\/span> appointed John Hamm<\/span> as its new Senior Director Finance & Accounting and Chief Financial Officer. In this role, his responsibilities include management of all the Company’s finance and accounting activities, while he continues to oversee corporate development and legal matters. <\/p>\n

Mr. Hamm has more than 25 years of finance and accounting experience, including 20 years in health care. He previously held the positions of Chief Operating Officer and Chief Financial Officer, Pharmacy at HealthSpring, Inc., a managed care organization now operating as Cigna-HealthSpring. <\/p>\n

He was also the Vice President Finance at Emdeon Business Services. Emdeon Inc., a healthcare technology firm that now operates as Change Healthcare Inc., a NASDAQ listed company with over $3 billion<\/span> in annual revenues.<\/p>\n

Mr. Hamm holds a Bachelor of Science in Business Administration with a minor in Accounting from Wheeling University. He earned his Master’s in Business Administration with an emphasis in Accounting from West Virginia University.\u00a0 He is a Certified Management Accountant (CMA) and Certified Financial Manager (CFM).<\/p>\n

Prior to this new appointment, Mr. Hamm served as Cumberland’s<\/span> Director Corporate Development. <\/p>\n

\n Paycheck Protection Program<\/b>\n <\/p>\n

On April 20, 2020<\/span>, Cumberland<\/span> received a loan from Pinnacle Bank in the aggregate amount of $2,187,140<\/span> pursuant to the Paycheck Protection Program (the “PPP”) under the Federal Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), which was enacted March 27, 2020<\/span>. The PPP is administered by the U.S. Small Business Administration (“SBA”). <\/p>\n

Pursuant to the PPP requirements, loan funds were used to maintain payroll, continue group health care benefits, and pay for rent and utilities during the pandemic. Cumberland<\/span> applied for this loan after carefully considering, with Pinnacle Bank, the eligibility criteria to participate in this program, and determining that it met those criteria. The Company evaluated and provided information on its payroll and other qualifying expenses to determine the amount of PPP funds to apply for. Due to assistance from the PPP loan, the Company did not lay off or furlough any employees as a result of the COVID-19 pandemic.<\/p>\n

Under the terms of the PPP, certain amounts of the loan may be forgiven if they are used for qualifying expenses as described in the CARES Act. Cumberland<\/span> used the PPP loan funds for such qualifying expenses. In October 2020<\/span>, Cumberland<\/span> submitted a request for the loan’s forgiveness and on June 11, 2021<\/span>, the Company received a formal notice from the SBA that the full amount of the loan was forgiven. <\/p>\n

\n RediTrex\u00ae<\/sup> Launch<\/b>\n <\/p>\n

During late 2018, Cumberland<\/span> completed the submission of and filed with the FDA a New Drug Application for its RediTrex methotrexate injection product. RediTrex is a new line of pre-filled syringes specifically designed for ease of handling and dosing accuracy for the subcutaneous administration of methotrexate in patients with arthritis and psoriasis.<\/p>\n

In December 2019<\/span>, the Company received FDA approval for RediTrex and began planning for the launch of the product line. Cumberland<\/span> provided initial shipments of RediTrex to accounts in November 2020<\/span> and is planning to launch the product line nationally in late September 2021<\/span>. <\/p>\n

\n Ifetroban Phase II Studies<\/b>\n <\/p>\n

\n Cumberland<\/span> is sponsoring Phase II clinical programs to evaluate its ifetroban product candidates in 1) patients with cardiomyopathy associated with Duchenne Muscular Dystrophy, a rare, fatal, genetic neuromuscular disease that results in deterioration of the skeletal, heart and lung muscles, 2) Systemic Sclerosis or scleroderma, a debilitating autoimmune disorder characterized by diffuse fibrosis of the skin and internal organs and 3) Aspirin-Exacerbated Respiratory Disease, a severe form of asthma. <\/p>\n

In addition, the Company has completed two pilot Phase II studies involving 1) patients suffering from Hepatorenal Syndrome, a life-threatening condition involving liver and kidney failure and 2) patients with Portal Hypertension that is associated with chronic liver disease.<\/p>\n

Additional pilot preclinical and clinical studies of ifetroban are underway, including several investigator-initiated trials. <\/p>\n

Enrollment in these clinical studies was interrupted due to the COVID-19 pandemic. While enrollment of new patients has been limited in 2021, many of the clinical study sites have reopened and resumed screening of patients for potential enrollment into the studies. Cumberland<\/span> is awaiting results from the studies underway before deciding on the best development path for the registration of ifetroban, the Company’s first new chemical entity.<\/p>\n

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\n FINANCIAL RESULTS<\/u>: <\/b>\n <\/p>\n

\n Net Revenues: <\/b>For the three months ended June 30, 2021<\/span>, net revenues from ongoing operations were $9.1 million<\/span>, compared to $9.6 million<\/span> for the prior year period. The company also recorded an additional $500,000<\/span> in revenue during the second quarter associated with divested rights to products that the company no longer distributes.<\/p>\n

Net revenue by product for the second quarter 2021 included $5.3 million<\/span> for Kristalose\u00ae<\/sup>,\u00a0 $1.8 million<\/span> for Vibativ\u00ae<\/sup>,\u00a0 $0.9 million<\/span> for Caldolor\u00ae<\/sup> and $0.4 million<\/span> for Vaprisol\u00ae<\/sup>.<\/p>\n

Year-to-date 2021 net revenues were $19.6 million<\/span>, compared to $17.9 million<\/span> during the first half of 2020. There were additional revenues of $1 million<\/span> during the first six months of 2021 associated with the divested product rights.<\/p>\n

Year-to-date 2021 net revenues by product were $8.3 million<\/span> for Kristalose\u00ae<\/sup>, $6.9 million<\/span> for Vibativ\u00ae<\/sup>, $2.5 million<\/span> for Caldolor\u00ae<\/sup> and $1.5 million<\/span> for Vaprisol\u00ae<\/sup>.<\/p>\n

\n Operating Expenses:<\/b> Total operating expenses for the three months ended June 30, 2021<\/span> were $10.5 million<\/span>, compared to $11.2 million<\/span> during the prior year period. <\/p>\n

\n Earnings:<\/b> Net income for the second quarter 2021 was $1.2 million<\/span>, or $0.08<\/span> a share, compared to a loss of $0.9 million<\/span>, or $0.06<\/span> a share for the prior year period. The adjusted loss for the second quarter was $16,000<\/span>, compared to an adjusted loss of $120,000<\/span> for the prior year period. <\/p>\n

Year-to-date net income in 2021 was $1.4 million<\/span>, compared to a loss of $2 million<\/span> during the first six months of 2020. Adjusted earnings for the first half of 2021 were $1 million<\/span>, compared to an adjusted loss of $0.5 million<\/span> during the same period in 2020.<\/p>\n

\n Balance Sheet:<\/b> At June 30, 2021<\/span>, Cumberland<\/span> had $88.9 million<\/span> in total assets, including $25.7 million<\/span> in cash and cash equivalents. Total liabilities were $41 million<\/span>, including $14 million<\/span> outstanding on the Company’s revolving line of credit, resulting in total shareholders’ equity of $48 million<\/span>.\u00a0 <\/p>\n

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\n CONFERENCE CALL & WEBCAST:<\/u>
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A conference call and live internet webcast will be held on Tuesday, August\u00a010, at 4:30 p.m. Eastern Time<\/span> to discuss the results. To participate in the call, please dial 877-303-1298 (for U.S. callers) or 253-237-1032 (for international callers).\u00a0 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).\u00a0 The Conference ID for the rebroadcast is 3985462. The live webcast and rebroadcast can be accessed via Cumberland’s<\/span> website at https:\/\/investor.cumberlandpharma.com\/events-calendar<\/a>.<\/p>\n

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\n ABOUT CUMBERLAND<\/span> PHARMACEUTICALS:<\/u>
\n <\/b>\n <\/p>\n

\n Cumberland Pharmaceuticals Inc.<\/b> is a specialty pharmaceutical company focused on the delivery of branded prescription products to improve patient care. The Company develops, acquires and commercializes brands for the hospital acute care, gastroenterology and rheumatoid arthritis markets.<\/p>\n

The Company’s portfolio of FDA-approved brands includes:<\/p>\n