• Net Revenue: $9.1 million for Q3 2024.
• Product Revenue Breakdown: $3.6 million for Crystal Os, $2.6 million for Sancuso, $1.3 million for Cdor, $1 million for Vibativ.
• Year-to-Date Net Revenue: $27 million.
• Gross Margin: Improved to 85% during the quarter.
• Total Operating Expenses: $10.8 million for Q3 2024, a $1 million improvement over the prior year.
• Net Loss: $1.5 million for the quarter.
• Adjusted Loss: $0.26 million or 2 per share.
• Total Assets: $76.7 million as of September 30, 2024.
• Cash and Cash Equivalents: $17.5 million.
• Total Liabilities: $52.3 million.
• Shareholders' Equity: $24.8 million.
• Credit Facility: $16 million drawn from a $20 million line of credit.
• Share Repurchase Program: 72,000 shares repurchased in Q3, 275,000 shares year-to-date.
• Tax Net Operating Loss Carryforwards: Over $52 million.

• Warning! GuruFocus has detected 3 Warning Signs with CPIX.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Cumberland Pharmaceuticals Inc (NASDAQ:CPIX) reported $9.1 million in net revenue for the third quarter, with strong performances from Chrysos, Sancuso, and Vibativ.
• The company has expanded Medicaid coverage for Chrysos in several states, which is expected to boost sales.
• CPIX has introduced new patient-oriented programs for Sancuso, enhancing its market presence and patient support.
• The company's balance sheet remains strong with $77 million in total assets and $17.5 million in cash and investments.
• CPIX is actively pursuing new clinical data and international market opportunities for its products, including the approval of Vibativ in Saudi Arabia.

Negative Points

• The company's sales were negatively impacted by product returns and shipment delays due to Hurricane Helene.
• There is a shortage of IV fluids affecting the sales of Vibativ, which requires reconstitution with IV fluids.
• CPIX faced a net loss of $1.5 million for the quarter, despite efforts to reduce costs.
• CMS did not include Caldolor as a non-opioid product eligible for special Medicare reimbursement, which could impact its sales.
• The efficacy results for the new delirium treatment were not statistically significant, indicating potential challenges in further development.

Q & A Highlights

Q: Can you provide an update on the impact of Hurricane Helene on your operations and sales? A: AJ Kazimi, CEO: The hurricane caused shipment delays and an unusual amount of product returns, impacting our sales in the third quarter. Two manufacturing facilities that supply much of our country's IV fluids were damaged, creating a fluid shortage that affected sales of our IV products. We believe our brand performance is best measured on an annual basis due to these disruptions.

Q: How is the performance of your product, Chrysos, in the market? A: AJ Kazimi, CEO: Chrysos continues to perform well, especially in states where we have Medicaid coverage. We are pleased to report that several more states have added Chrysos to their Medicaid plans, and we are working to increase awareness of this coverage.

Q: What are the recent developments in your international markets, particularly for Vibativ? A: AJ Kazimi, CEO: Vibativ is now approved in Saudi Arabia, with launch plans underway. We are also pursuing initiatives to register and launch the product in new international markets, which we believe will help address the global resistance crisis.

Q: Can you elaborate on the new clinical data for Caldolor and its implications? A: AJ Kazimi, CEO: We announced a new study comparing Caldolor to its competitor, which showed that Caldolor is associated with a significantly reduced incidence of adverse drug reactions and improved healthcare utilization. These findings underscore Caldolor's potential to improve patient care and reduce healthcare costs.

Q: What are the financial highlights for the third quarter of 2024? A: John Hamm, CFO: Net revenue was $9.1 million, with a gross margin improvement to 85%. Operating expenses were reduced by $1 million compared to the prior year. The net loss for the quarter was $1.5 million, with an adjusted loss of $0.26 million or 2 cents per share.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.