Corporate Update

To Our Shareholders, Employees & Partners:

Managing our product portfolio is a key focus of our corporate strategy. We have designed and implemented a multifaceted approach to expanding our business. It includes maximizing the potential of our existing brands, developing new ways to use our products, expanding our roster of distinguished partners and acquiring select new brands. We are pleased to share several exciting updates on this front from the first quarter of 2022.

We started the year announcing our acquisition of Sancuso® from the U.S. affiliate of Japan-based Kyowa Kirin Co., Ltd. Sancuso is an FDA-approved oncology-supportive care medication. It is administered as a dissolvable prescription patch to prevent nausea and vomiting during certain chemotherapy treatments.

Through the acquisition, Cumberland obtained full commercial responsibility for Sancuso in the U.S. — including its marketing, promotion, distribution and manufacturing. We formed a new sales division, Cumberland Oncology, which includes a group of seven individuals who supported the brand at Kyowa.

In addition, we entered into a co-promotion agreement with Verity Pharmaceuticals who will feature Sancuso through their national oncology sales organization. We believe it has the potential to be a valuable product and we are honored to be able to bring it to patients throughout the U.S.

Also during the first quarter, we shared several developments regarding Vibativ®, our potent antibiotic used to treat patients with pneumonia and serious skin infections resulting from gram positive bacteria.

  • In March, we announced the launch of Vibativ in Puerto Rico, again through a partnership with Verity Pharmaceuticals, a specialty pharmaceutical company with a particular strength and experience in the Puerto Rican market.
  • We also announced a new partnership with Saudi Arabia-based Tabuk Pharmaceutical Manufacturing Company to introduce Vibativ in the Middle East. The arrangement provided Tabuk exclusive rights to distribute Vibativ in Saudi Arabia and Jordan, with the option to expand into other countries in the region.

Meanwhile, enrollment in our clinical programs continues to improve, after having been interrupted by the pandemic. With a series of Phase II clinical studies underway, we are continuing to evaluate our ifetroban candidate in patients with a series of unmet medical needs.

In addition to our company-sponsored studies, an NIH-funded, Harvard-clinical-investigator-led trial in patients with a severe form of asthma known as Aspirin Exacerbated Respiratory Disease has closed enrollment. We look forward to sharing the results from that study once data analysis is complete.

Fueled by the addition of Sancuso sales, our product portfolio of FDA-approved brands delivered combined revenues of $11.2 million during the first quarter of 2022 – a 6% increase over the prior year period. Adjusted earnings  for the quarter were $0.5 million, or $.03 a share.

We ended the first quarter with $97 million in total assets $56 million in liabilities and $41 million of shareholders’ equity. 

I’d like to thank our Cumberland team for their dedicated efforts and support of our mission to provide high-quality medical care to patients throughout the world. The first quarter provided a strong start to 2022 and we look forward to continuing the important work throughout the remainder of the year.

All the best,
A.J. Kazimi
Chief Executive Officer
May 2022