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Cumberland Pharmaceuticals Announces Share Repurchase Program

May 17, 2010
Cumberland Pharmaceuticals Announces Share Repurchase Program 12.4 KB
Cumberland Pharmaceuticals Announces Share Repurchase Program

NASHVILLE, Tenn., May 17, 2010 - Cumberland Pharmaceuticals Inc. today announced that its Board of Directors has authorized the repurchase of up to $10 million of the Company's outstanding common stock.

"This stock repurchase program reflects our confidence in Cumberland's long-term potential. We believe that our shares are currently undervalued and represent an attractive investment," said A.J. Kazimi, Chief Executive Officer of Cumberland Pharmaceuticals.

The Company plans to repurchase up to $10 million of shares of its common stock from time-to-time in the open market. The timing and amount of any purchases will be determined by the Company based on its evaluation of market conditions, stock price and other factors.

Funding for the repurchase will be limited to excess cash flow. The Company will not repurchase shares with funds from its borrowing facilities or with proceeds from its recent initial public offering, which remain available for intended uses such as the commercial launch of Caldolor® and new product acquisitions. The Company continues to evaluate promising new product opportunities and is committed to selectively expanding its portfolio over time.

About Cumberland Pharmaceuticals

Cumberland Pharmaceuticals Inc. is a Tennessee-based specialty pharmaceutical company focused on the acquisition, development and commercialization of branded prescription products. The Company's primary target markets include hospital acute care and gastroenterology. Cumberland's product portfolio includes Acetadote® (acetylcysteine) Injection for the treatment of acetaminophen poisoning and Kristalose® (lactulose) for Oral Solution, a prescription laxative. The Company also recently launched Caldolor® (ibuprofen) Injection, the first injectable treatment for pain and fever available in the United States. Cumberland is dedicated to providing innovative products which improve quality of care for patients. The Company completed the initial public offering of its common stock in August 2009. For more information on Cumberland Pharmaceuticals, please visit www.cumberlandpharma.com.

Forward Looking Statements

This press release contains forward-looking statements, which are subject to certain risks and reflect Cumberland's current views on future events based on what it believes are reasonable assumptions. No assurance can be given that these events will occur. As with any business, all phases of Cumberland's operations are subject to factors outside its control, and any one or combination of these factors could materially affect Cumberland's results of operations. These factors include market conditions, competition, an inability of manufacturers to produce Cumberland's products on a timely basis or a failure of manufacturers to comply with regulations applicable to pharmaceutical manufacturers, maintaining an effective sales and marketing infrastructure and other factors set forth under the headings "Risk factors" and "Management's discussion and analysis of financial condition and results of operations" in Cumberland's Form 10-K filed with the SEC on March 19, 2010. There can be no assurance that results anticipated by the Company will be realized or that they will have the expected effects. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. The Company does not undertake any obligation to publicly revise these statements to reflect events after the date hereof.

SOURCE: Cumberland Pharmaceuticals Inc.

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