Corporate Update
August 2024
To Our Shareholders, Employees & partners:
I'm pleased to report that Cumberland delivered a strong financial performance for the second quarter!
Our line of FDA-approved brands delivered just under $10 million in net revenues, which represented 16% in sequential growth from the first quarter of the year. We a so generated adjusted earnings of $0.2 million, which was a $0.8 million improvement over the prior period.
Our June ending balance sheet included just under $80 million in total assets, with $17 million in cash and investments. Total liabilities were $53 million and shareholders' equity totaled $26 million.
We continued our corporate share repurchase program during the quarter and several Board members implemented share purchase trading plans to increase their holdings in the Company.
In June, a study published in Antimicrobial Agents and Chemotherapy found that Vibativ® could be an effective treatment for anthrax inhalation, the most dangerous form of those infections. Researchers highlighted the product's potential as an alternative therapy if anthrax bacteria develop resistance to existing antibiotics.
Also during the quarter, we worked to expand the use of Kristalose® our prescription-strength laxative, in the growing number of states where the product has favorable Medicaid coverage. We are pleased to share that, in addition to New York and Texas, Kristalose is now covered on Wisconsin Medicaid plans. We also recently launched a campaign featuring the American Gastroenterological Association's guidelines that included Kristalose as a first-line treatment option for opioid-induced constipation.
After successfully transferring the manufacture of Sancuso® — our oncology support medication — to a new facility that received FDA approval in 2023, we recently introduced our newly Cumberland-packaged product made there.
Additionally, we continue to progress our pipeline of innovative products designed to improve patient's care and their quality of life. We currently have three Phase Il studies underway evaluating our ifetroban product candidate in patients with unmet medical needs.
We've now applied for special designations for our Duchenne Muscular Dystrophy product candidate:
- I) Orphan Drug Designation, which is granted to products that show promise in the treatment, prevention or diagnosis of rare — or orphan — diseases. Such designation can result in a number of benefits associated with the FDA review process, including exclusivity after product approval.
2) Rare Pediatric Disease Designation, which is given to products intended to prevent or treat serious or life threatening diseases that primarily affect children. Upon FDA approval this designation may result in a valuable priority review voucher from the FDA to accelerate approval of a different product.
We expect to hear back on both applications this year.
Meanwhile, we continue to support our international partners in their efforts to register and launch our potent antibiotic Vibativ® in their countries. Planning for the brand's launch in Saudi Arabia is now underway.
I'd like to acknowledge our team for their dedicated efforts in advancing our refined mission of working together to provide unique products that improve the quality of patient care. We remain focused on that mission as we move through the second half of 2024, and we look forward to keeping you updated on our progress.
All the best,
Please see our corporate website at www.cumberlandpharma.com for links to our product websites for full prescribing and safety information on our brands and for our SEC filings that contain the risk factors associated with our business.