Cumberland Pharmaceuticals Inc. (CPIX) on Q1 2021 Results - Earnings Call Transcript
Operator: Thank you for joining Cumberland Pharmaceuticals First Quarter 2021 Financial Report and Company Update. This call is being recorded at the company's request and will be archived on Cumberland's website for one week from today's date. Now I would like to introduce Erin Gull, who is responsible for Corporate Relations at Cumberland. Erin, please go ahead.
Erin Gull: Good afternoon, everyone. Today, we issued a press release containing the company's financial results and corporate update for the first quarter ended March 31, 2021. That release with related financial table is available on our website at www.cumberlandpharma.com. Please note that today's discussion may include forward-looking statements as defined in the Private Securities Reform Act of 1995. And because any such statements reflect the company's current views and expectations concerning future events, they may involve some risks and uncertainties.
A. J. Kazimi: Well, good afternoon, everyone, thank you for joining us. As Erin noted, today, we'll provide an overall company update, along with the review of our first quarter financial results. While, the novel Coronavirus continues to affect our lives over a year after its arrival in the U.S. However, we remain hopeful. With a growing number of Americans fully vaccinated new cases of the virus in decline, it's good to see an overall reopening of our country, which is now underway. Throughout the pandemic, Cumberland encountered the most challenging operating environment we've ever faced as a company. Our business and our clinical staff are affected as fewer patients sought elective surgeries and our access to medical facilities was substantially limited.
Marty Cearnal: Thank you, AJ. During the first quarter this year, we held a successful national sales meeting to help support and equip our sales teams in their efforts to build our brands while navigating the current health care landscape. The meeting was held virtually among our sales personnel who participated from across the country. As a reminder, we have two national sales divisions, one calling on key hospital accounts across the country and the other division, calling on select office based physicians. Our primary target markets are hospital acute care and office based gastroenterology. These medical specialties are characterized by relatively concentrated prescriber basis that can be supported effectively by our team of experienced sales professionals. Both of our sales divisions altered many of their promotional tactics, using more electronic and telephonic communications. Additionally, we augment those activities with an enhanced internal sales capability, reaching out to hospitals and physician offices directly from our headquarters. These innovative and efficient ways to expand our reach, add new coverage and ensure awareness of our products allowed us to stay on a growth trajectory during the pandemic. Moving to our commercial products, we were pleased to see recent publications supporting the use of our rabeprazole brand in patients with COVID-19. The health outcomes predictive evaluation or HOPE, COVID-19 registry analysis was an international study of over 4000 COVID-19 patients was recently published and showed that patients hospitalized with COVID-19 had a high risk of developing hyponatremia while hospitalized. Hyponatremia is an imbalance of the serum sodium to body water and is the most common electrolyte disorder among hospitalized patients. Severe hyponatremia has long been recognized as a direct cause of death or permanent neurological problems in hospitalized patients. The HOPE study demonstrates the high prevalence of hyponatremia in COVID-19 patients and the need to treat this electrolyte imbalance. Rabeprazole treats hyponatremia and can normalize serum sodium levels with a proven day one response helping these patients spend fewer days in the intensive care unit. Rabeprazole is the only intravenously administered brand for the treatment of hyponatremia and is essential for patients who are incubated are not able to take medications orally, which is especially important for COVID-19 patients. Additionally, our Vibativ product was used to help COVID-19 patients who developed these types of bacterial infections in their lungs. Vibativ is a potent antibiotic designed for difficult to treat infections is FDA approved to treat both hospital acquired and ventilator associated pneumonia that results from susceptible organisms. During the last year, we were pleased to hear Vibativ being used to help COVID-19 patients who develop these secondary bacterial pneumonias and other gram positive infections while in the hospital. We subsequently compiled a case study dossier outlining several real-world instances whereby Vibativ effectively and safely treated these COVID patients.
A. J. Kazimi: Thanks, Marty. I'd like to ask our Senior Director and Chief Financial Officer, Michael Bonner for the Financial Review. Michael?
Michael Bonner: My pleasure AJ. For the three months ended March 31, 2021, net revenues from continuing operations were 10.5 million, a 26.5% increase over the 8.3 million during the prior year period. We also recorded an additional 0.5 in the first quarter of this year as discontinued operations associated with the return of rights to the two products that we no longer distribute. Net revenues by product for the first quarter include 5.1 million for Vibativ, 3 million for Kristalose, 1.5 million for Caldolor and 1.1 million for rabeprazole.
A. J. Kazimi: Okay, thank you, Michael. Well, as we reported today, Cumberland was able to deliver another successful quarterly performance in spite of the challenges of operating during the pandemic. And as I stated earlier, we're grateful we're able to keep our business operating and our organization intact during those difficult times. We once again posted solid year-over-year revenue growth and improve cash flow from operations, which speaks to the strength of the business, the diversity of the product portfolio and the steadfastness of the commercial organization. Over the past year, when we quickly adjusted market strategies that are promotional activities and we reinvented the way we interact with our customers and support the patients who need our medicines. We've continued to expand our product portfolio through a series of successful business development initiatives. And we now feature seven FDA approved brands, along with a robust pipeline of new product candidates in late stage development. Given what we're seeing with the markets we serve, we do anticipate double-digit revenue growth for the full year 2021. We also expect continued cash flow from operations and positive adjusted earnings in 2021 as well. Our goal is to deliver sustainable growth and profitability. During this year, we'll focus on maximizing the potential of our existing brands, while continuing to build a portfolio of differentiated products. As a result, we are pursuing opportunities to expand the use of our FDA approved products into additional patient populations, while also developing several new product candidates that address poorly met medical needs. Our commercial brands, combined with the new products from our pipeline can be important growth contributors to our business for years to come. And the addressable markets for these products are quite large for a company of our size, and maximizing these opportunities can have a significant impact on our value. Additionally, we are actively pursuing opportunities to acquire new marketed products, as well as late stage development product candidates in our target medical specialties. We will continue to efficiently manage the business as we emerge from the pandemic, while remaining dedicated and focused on our mission of advancing patient care to deliver high quality medicines. So with that, review, and update now let's open the call to any questions you may have. Operator, please proceed.
Operator:
A. J. Kazimi: Well, thank you everyone, for joining our call today. And as I mentioned in the past, we do understand that many of you prefer a private discussion with management. And so please just reach out if you want to us if you'd like to hold such a call. We do appreciate your time and your interest in our company. And we look forward to providing another update after the end of the second quarter.
Operator: Thank you, sir. Ladies and gentlemen, that concludes our conference call for today. If you would like to listen to a replay of the conference, please dial 855-859-2056 using the access code 7973325. Alternatively, a replay of the webcast will be available on the company's website. I would like to thank you for your participation. You may now disconnect.
