- Earnings call transcript Q3 2022

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Operator

Good afternoon, and welcome to Cumberland Pharmaceuticals' Third Quarter 2022 Financial Report and Company Update. This call is being recorded at Cumberland's request and will be archived on the company's website for 1 year from today's date. I would now like to turn it over to Molly Aggas, Account Supervisor at the Dalton Agency, who handles Cumberland's communications. Molly, please go ahead.

Molly Aggas

Hello, everyone, and good afternoon. call. today's joining for Thanks Earlier this results with release financial a company Cumberland the third issued for along press quarter update. containing afternoon, of the XXXX, on financial The can the which at related release, be includes found Cumberland's website www.cumberlandpharma.com. tables, of an call. Company results financial overview will during those management share today's discussion They'll also a provide pipeline brands, company overall its an and including update, of partners. A.J. Participating in today's call are and Kazimi, Hamm, Chief Executive Officer; John Chief Cumberland's Officer. Financial Reform their that in keep may of forward-looking statements mind defined Securities Please as the Private include discussions Act XXXX. in These current future statements and events, views it uncertainties. the and reflect company's expectations may concerning involve risks

are are XX-K that differ public results, health from there under in Factors are Risk described today's company's that during affect additional the downturns, company's including actual any conflicts international statements with best Cumberland's risk Despite the updates and call others the forward-looking caption Additionally, Any the future factors. materially many and factors efforts, epidemics, Cumberland's are expectations. may economic issues Form SEC. natural made Those qualified those by disasters, filed results beyond could control.

shared remember information isn't developments. the this So result a for current be information whether due of responsible statements, any as that updating forward-looking company only. today new call as of future considered or on Please should to

And can and earlier company that the for today's financial to there brand website. with included to this reconciliation each link information Full is references product The will and earnings to the be issued prescribing release GAAP several the provide measures those measures During afternoon. on tables safety respect call, found in at be non-GAAP An the will a found brands. of Cumberland's some also sites be marketed in on www.cumberlandpharma.com. explanation financial corporate can individual was to performance. website

over which to I'll call, answer If them call any the Officer, Executive A.J. turn that them. Cumberland's With overview, you be at end of please to questions, we'll the Kazimi. point, until have the hold Chief happy

A. J. Kazimi

Thank We and everyone. good us. joining you, Molly, afternoon, appreciate you

we Cumberland. another and our today, of developments an hear the at and active you'll update quarter here for productive results provide quarter As third financial had XXXX. on the review latest We'll

I'm successful quarter, Cumberland report So delivering of that on goal pleased third period. to growth double-digit for a very started. our had get let's the revenue

$XX.X earnings Our share. adjusted or line brands revenue of in FDA-approved in $X.X generated $X.XX and a million million

sales selling more see organization to navigate a Our challenges to to a we in continues environment. marketplace, are typical the the return and starting

division, physician sales which However, new great newest number our seeing start. product Oncology. experienced it's offices, we are still at by led the the And off our to the visits. Sancuso, facility brand, are of financial patient impacting staffing procedures through strong from clinics and and supporting contributions we hospitals, shortages performance we're year-over-year a Still, Cumberland

our with promote entered need as a to most Oncology, division, completed we prevention FDA-approved cancers. we've specialty its organization. this that treatment we expanded agreement we in chemotherapy and During Already, medical assumed acquisition, of to now types of patients for and sales training one term To during X-year sales the to Verity from We've Sancuso important $XX help including transition treatment. will its third extend Cumberland. the their in launched facility completed feature Cumberland By oncology tolerate will our initial vomiting for and quarter. can and only of Sancuso, to their to U.S., resulting receiving quickly and support the our up Verity a Sancuso new X co-promotion for across promotion and and patch business. through million formed recall their the the addressing prescription quarter, international of in fund credit for contributor option new certain with team years Verity an Kyowa Pharmaceuticals contribution full nausea becoming and support extended is to these the patients their product responsibility issues, of X-year Sancuso additional significant share mentioned, the in line U.S. and also to Cumberland the and efforts. third the to first term Sancuso To at product I provide we distribution a seen bank a activities. Kirin incremental we Verity's an largely from promotion, then a for for marketing, an new continue brands here commercial margin capital. the

joint Our benefit teams can cancer from and expanding closely this the to forward look working we of on patients brand. who initiatives are marketing sales and number

of was the operations $XX.X while addition our the cash product the a Adjusted XX% period of flow sales, quarter, increase delivered portfolio or over combined increase year-to-date earnings Sancuso the share, during third were $X.XX $X.X $X.X a With prior a year. million from the quarter period. for million revenues over million, same year third last XX%

Shareholders' grew our in by of liabilities were as our was Total on a $XX.X including total Sancuso XXXX. cash. revolving As the $XX the September to quarter, end million $XX.X million million result million including of $XX of line XX, of assets equity acquisition, the $XX third credit. million,

improvement use performance. an initiatives our as certain see Vibativ pneumonia a infections, those behalf. and a to his new our on on life-saving serious leadership out antibiotic, year, for like fresh the wish an Todd can go injectable Anthony, call and team I'll complicated and on well to initiatives, increase from on unfortunately, surgery. support at ventilator-associated best Earlier well, over beginning to of We But or give overcovering marketing implementation the Now the brand's to Based elective this today, update skin recent sales I and took we and Vibativ, bacterial the hospital-acquired and Vice series are a as to brand. potentially our a infections. launched our potent Todd awareness of ahead brief now touch hand including I'd of first how they President, look brands. typically update we our is him designed support treat

engagement Next, been feature the convenient quickly the does support our X our free clear, Kristalose, customers. just dissolves of [indiscernible] patient added marketing that the campaign Kristalose partners. in powder our physicians to brand, facilities we've recently expanded prescription award-winning for with providing to benefit has support Cumberland co-promotion been to in laxative brand cover. platform. XXXX taste-free with refreshed for I'd and increased ounces not has and like And continues which a The also premeasured the We of solution. a packaged discuss water, dose, to support in which

which in to we remind procedures Caldolor. patients opioids. the received now like significantly up significantly from approval use prior pain late waking results Turning fewer for that I'd you less and needing to last just FDA in to surgery, also year, its

as in to our of Caldolor more presentation ready-to-use patients continue elective see for We growth surgeries. return

now for shipments product touch I the receiving consecutive international mention and you our prevent help have days. Additionally, in to nausea to before portfolio, up the the see newest year. can Sancuso, X And nicely like contributed chemotherapy, the which to brand's over on vomiting it I'd performance did earlier.

a making about they it potential try times nausea very and the deliver it deliver throughout therapeutic Now taken who the alternative difficult believe excited swallow. several and X-day of are honored for to oral to We're same it treatments when cancer country. during and patients period day doses be must to in this Sancuso some to experiencing patients we're the

of rheumatoid, safe, pain the prefilled fourth dosing an which for I'd of as quarter accurate launched product needle this RediTrex share well last as and year. of active an line treatment designed risk syringes needlesticks. methotrexate simple line, idiopathic update automatic juvenile like reduces in we psoriatic prefilled Next, arthritis. to the extra-thin is severe retractable, on It's of our that our XX-gauge These and assure safe syringes

initial early this product sales quarterly of that's an steadily, and in Quarterly were the Our the year are through sales. increase stocking shipments product our in RediTrex and the and resulting growing our last prescriptions channels. limited moving distribution for our began now as year

during Based in RediTrex the Pharma, our products license now Nordic continue rights next U.S. our the the Nordic call, methotrexate to RediTrex previously for by us period. who of announced after associated we'll into year. XX for amendment, As the an prior may care . with those the a line. entered March Meanwhile, covered on including third support commercialize we RediTrex during to we with U.S. growing is transition , with provided for distributing responsibility then, the a and Until the assume of number our during agreement managed amendment earnings quarter,

And marketing of refund of them them future Nordic returning return the Following the they'll XXX,XXX license, issuing their on note Nordic's the license we $X line authorization in facilities. finished to RediTrex the any with in Cumberland United from of including as Nordic. amount Cumberland return collaborate was product with ongoing the as of of the provide with monitoring in with product a we the the supply will the third also the royalty will following paid during another the from approval sales materials through for Nordic's million our be associated and million the line. our manufacturers original April line. to XXXX. credit the $X shares raw FDA-approved on associated the the associated States. to will in due to Cumberland companies favor issued [indiscernible] and transition the worked Together, closely chain, commercialization our Meanwhile, continue quarter, emerging supply which the that of unpaid launch products, those well us, the goods transfer

longer product. we and has time. previously were the the product, their supplies to of engage and manufacturer As and Their await resuming Since awaiting brand availability difficulties ownership for FDA provide then, in for remaining product its supplies Vaprisol, of been new a management, to now us having for year, transitioning our order new all is new potentially approval we facility encountered new to we've for our and shipped during new we in packaging to Vaprisol the of for suspending available supplies the Last therefore, that and do the facility pandemic. the under transferred the a at currently shipments Omeclamox-Pak unable of Also, product. operations plant that that before reported, package FDA no manufacturing we're notified inventory the with that we're brand.

our while critically the with and in is special Form received a newest address of support FDA-approved we're facility medicines them manner. our sales of working facility relaunch Meanwhile, to letter relaunch patients our portfolio partner compounded national we several are ill with to Oncology. awaiting manufacturing needed a new through Cumberland warning -- -- approval to needed divisions they timely FDA interim approval needed X issues for Vaprisol. supply the We Our that support including product to working

on country calls division key sales division space office cover institutional hospital the accounts our Our select across positions. field and

So now a that with to John I'd Hamm, review Financial results. financial the overview, turn quarter to of present Cumberland's John? like third Officer, Chief to

John Hamm

A.J. you, Thank

the of million $XXX,XXX, It's year For million period. during for the quarter on Caldolor. $XX.X prior revenues million revenue included expenses note third $X.X we Kristalose, for product Sancuso, those Year-to-date, resulting should assessed XXXX million, million back, was compared are months the selling. Year-to-date, revenues of quarter to for ended quarter including the and continuing Again, $XX.X given earnings totaled to increase. with were the and expenses Kristalose, Caldolor. last XX, for adjusted from contributor of adjusted note million $X.X Vibativ earnings $X.X net were first $X.X loss operating our a months for year. of of the $XX.X XX% was the customers, significant a million product results. million expenses this were net the during $XX the year. product's a the that patterns marketing for fluctuations to improvement from main of increase noncash acquisition. for performance please that recorded $X.X not Also, X The first earnings same the that the revenue over million Sancuso of $X $XXX,XXX during Those $X.X for period important third year-to-date million have prior when sales the in Sancuso million, is include were year-to-date, $X.X last of Vibativ this a the revenues annual the net our million expenses the and $XX.X and were the addition received buying to revenues X Sancuso Year-to-date, period. the million be XXXX, expenses do million $XX.X quarterly in Total also $XX.X $XXX,XXX for in each totaled distribution, The significant million new product's loss $X.X the believe for additional million over $X.X The benefit XX% loss $X driver increase primary part those we net for amortization, million million, benefit of Year-to-date, the $XX.X X of were of were as for adjusted based and for during September million third the million. Vibativ operations Sancuso, associated added the the from months quarter quarter. cost-of-goods the $X.X million, $X.X for by XXXX. compared year increase adjusted XXXX. up Net

impacted you significantly a that XX% by X over payment Vibativ flow upon the financial So million in the financial a closing of first payment. terms and I'd have remind acquisitions. like Sancuso XXXX. the statements transaction total cash for from $XX million, been Vibativ $X included to our The million subsequent months $X.X was milestone operations up

Due We new sales. inventory, million were $X I'm on begun it Vibativ's total on as end based launch in sale combination. million our million provide business has of of of $XX XXXX, amortization of approximately since million also has pleased $XX and for accounted to return delivered of therefore, these the business intangible the totaled and the the as Vibativ of assets the of investment. contribution royalties assets a value the $XX $XX our of $XX million A report the $XX acquisition, a million in cash quarter. of a acquisition late a and total inventory, third product generating We intangibles to in million assets result added at including to goodwill. that

net delivering $X.X $X and Turning payment of included to payments financial tiered the million sales. to to in in a up contribution milestone cash off The upon for Sancuso quarters million a X first the Sancuso start product is $XX.X closing, terms acquisition. during million royalties XXXX. fine

combination. As Sancuso business for the with we Vibativ, accounted a as acquisition

X-year developing acquisition, in assets the the the a Previously, final including a end renewed of total are preliminary intangible $X goodwill. the million these for And of in was third estimate of estimated of we assets The million a line credit added of We at our a value million approximately $XX basis, of as on valuation assets result and of $XX million million quarter. the inventory, $XX Sancuso we transaction. of new $X term. new

new to During the first utilize increase $XX quarter ability capital. fully of XXXX, we expanded to our use amended allowed million the of the This we provide More facility to recently, acquire our us the facilities credit Sancuso. line. rights to of line to this in U.S.

balance our to sheet. Turning

third facility. including including of quarter. and Liabilities credit Total shareholders' XX, $XX.X we the million cash had at our As was $XX.X total of the million in September assets million $XX.X equity cash XXXX, in equivalents. end million, million totaled $XX on $XX.X

we XXX,XXX program have associated total included employee-vested on shares. those group a repurchased to fund purchase shares the our their as repurchase members total those in as quarter, a restricted Cumberland through A continued repurchased with designed shares. open also to These shares. to the During we taxes company. Board holdings Year-to-date, repurchases well increase Cumberland and of of market our of XX,XXX the the share needed corporate continue

total continues like stock I'd completes third a operating Back report A.J. of quarter million to resulting of you, purchased prior for have And our also they XXXX, primarily to net of options. in financial $XX note loss to in exercise the that that far from XXXX. carryforwards, Cumberland So XX,XXX over shares. hold the

A. J. Kazimi

product million by a X many Products. disease, an we're a who Sclerosis, Dystrophy, genetic candidate. opportunities. product severe you being disease. disorder; John. aspirin-exacerbated the And Duchenne build We're you, know, is This clinical innovative programs asthma; a respiratory of following and us working our II involve Drug funded These Muscular debilitating pipeline studies program $X Systemic been by sponsoring of FDA's Phase with have a Office form of new provided Thank to neuromuscular grant featuring ifetroban patients autoimmune

height Today, evaluate line began last in research improved [indiscernible] the XX returning medical studies centers results these I'm Top during AERD patients for significantly desensitization. data This will Interstitial working on clinical enrollment II patients of medical study. without designed in ifetroban enrollment enrolled the FDA which slowed across to the the This reopened be patient Diseases. pandemic. treat ifetroban were has AERD year enrollment While can clinical upon as application will XX evaluate year, announced patients the of improve for randomized is our completion U.S. announcing II We're closure use Progressive Lung treatments. program also of Phase whether placebo-controlled the trial their the to study's in fourth analysis. symptoms in to and clinical total of patients a Fibrosing centers A Phase to an with the to

company-sponsored our to various are studies, with studies of underway investigators-initiated stages also addition at In ifetroban completion. several there

product Cumberland as the involved. placebo well supplies studies, research these For groups ifetroban as the typically to

So our benefit that the with registration with path orphan line many represent complete to then to ifetroban, each studies, of our potential the is believe has which unmet data, patients analyze plan announce company-sponsored the diseases of top we going development forward continue final results medical the decide to needs. best on and

natural be will [indiscernible] Cumberland overview the and an signed Next, we I'd responsible in activities October, pharmaceutical for We then a an we're distribution supplies, that new distribution presence important fit responsible product intravenously a for partner careful partnership. as product a providing new the for Caldolor a pain supply of established for delivered formulation starting Mexico. of underway, that In market. makes network the Mexico to believe with agreement, the ibuprofen. like [indiscernible] in with our an Under work be with few in with terms while of securing strong of will [indiscernible], to regulatory to provide and can exclusive a international the as of pleased serve Caldolor, [indiscernible] approval Caldolor in them the agreement management role there, Mexico. the commercializing and and establish

the our to Tabuk exclusive Tabuk East. partnership based a new arrangement we and distribute Vibativ Arabia antibiotic. Saudi other the Vibativ to countries leading region. injectable Saudi-based, an to in the Arabia. Saudi and in Tabuk's Pharmaceutical into a conglomerate a the of option publicly-traded introduce In Jordan, Turning into The Industrial rights as expand subsidiary provides March, Group, with to fully-owned Middle with announced in Vibativ, Astra

While for review Vibativ review Vibativ in SciClone the country, and results is in the application are their process submission. last Since begin September. been accepted the Pharmaceuticals we've of China now registration -- as the at information of associated supporting their planning partner for launch the in their manufacturing approved Meanwhile, potential in of in the XXXX market. we to important China, forward look We that that requests to we that for Vibativ for SciClone the launch sale then, there. our to had product has adding in new of

focused just like on in the patients Caldolor product and countries promoting in States, those to SciClone. remain described, and the we and involving to we Tabuk companies formed While we're partnerships Vibativ like bring excited [indiscernible], here in United other

and it. our to positive a the the from announced onto encouraged participation pipeline to are that presence as who to pleased need week, Nashville, of our And of Cumberland in to overall, to the And across as on pursue Sancuso health the the This partners. campus our our last base us helps the the believe country. to the by country I'm which arrival had product recent to catalyst represents serve its we've able care of progressing and offices delighted serve of serving Broadwest of our finally, focused brands, maximizing new customers community, particularly We're our allows that accommodate So plan our successful new and company. health here strategy contributions deliver acquisitions. care concentration in patients End move to business. the Nashville to -- and announce and us continuing We're And international we we're corridor been impact in better potential our the the largest growth our of move we honored for another And select remain continue Tennessee. growth has of quarter. headquarter Vanderbilt/West commercial on companies oncology

to just new finish and well-located, double-digit important improved company's goal strong I'd like an with XXXX, achieve I'm that headquarters confident for the to do pipeline, closing, success. year. say role products play in the a will future, state-of-the-art a an of the expect new also selling to robust So optimistic very promote, enabling environment revenue us our we're our growth our in to and about we future

questions to may and Now review any with open please that update, let's call the have. proceed. you Operator,

A. J. Kazimi

And everyone, a a And Thanks, please us, just you joining many to hold be schedule discussion that you. on understand we'll and call. today's so, such of happy private do we prefer if with with management. call for and with out get reach

time your we end year. after we providing and update appreciate and another interest look forward to in the always, the Cumberland, of As

Operator

that Thank Ladies and call. sir. concludes today's you, gentlemen,

visit like for If you participation. the like you I replay Investor to on your a to please discussion, to Cumberland's website. the listen thank section would Relations would of

disconnect. now may You

Molly Aggas	Account Supervisor, Dalton Agency
A. J. Kazimi	Founder, Chairman, President & CEO
John Hamm	Senior Director of Finance & Accounting & CFO

Cumberland Pharmaceuticals (CPIX) 13 Nov 222022 Q3 Earnings call transcript