Cumberland Pharmaceuticals Inc. (CPIX) reported third quarter earnings of 10 cents per share, well above the Zacks Consensus Estimate of 1 cent. Revenues for the quarter came in at $13.6 million as against $8.6 million in the comparable quarter of 2008, up 58%.
The increase in revenues for the quarter was attributable to the initial sales from Caldolor injection, the intravenous formulation of ibuprofen, coupled with the increased usage of Acetadote, an injectable drug intended to counter the overdoses of acetaminophen. The U.S. Food and Drug Administration (FDA) approved Caldolor in Jun 2009.
The product, launched in Sep, is the first injectable product available in the U.S. for treating pain and fever. The injection is used primarily for treating hospitalized patients who cannot receive oral drugs for reducing pain and fever. The drug is promoted by a sales force of 113 personnel. Total operating expenses for the quarter increased 72% to $11.2 million from $6.5 million in the year-ago period.
The increase was primarily attributable to sales and marketing expense attached to the Caldolor launch and higher cost of products sold and a change in product mix. The company exited the quarter with $79.5 million in cash and cash equivalents, which reflected a $67.7 million increase from the second quarter of 2009.
The increase was primarily attributable to the company’s initial public offering of 5 million shares of common stock at a public price of $17.00 per share thereby raising $85 million in gross proceeds, in August. Cumberland exited the quarter with total debt of $19.8 million, which included $4.5 million in current liabilities.
Cumberland Pharmaceuticals founded in 1999 and headquartered in Nashville, Tennessee, focuses on acute hospital care and gastrointestinal treatment. The company competes with players like Hospira Inc. (HSP) in the industry.
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