Cumberland Pharmaceuticals Inc (NASDAQ: CPIX)

Cumberland Pharmaceuticals Inc. is a specialty pharmaceutical company focused on the acquisition development and commercialization of branded prescription pharmaceuticals. The company is dedicated to its mission of working together to provide unique products that improve the quality of patient care. Its primary target markets are hospital acute care gastroenterology and oncology. These specialties are characterized by relatively concentrated prescriber bases that the company believes can be served effectively by small targeted sales forces. Cumberland promotes its approved products through its hospital field and oncology sales divisions in the United States and has built a network of established international partners with the regulatory and commercial capabilities to register and provide its medicines to patients in their countries.

Cumberland Pharmaceuticals Inc. generates revenue primarily from the sale of its FDA approved branded products which include Acetadote ® injection for the treatment of acetaminophen poisoning Caldolor ® injection for the treatment of pain and fever Kristalose ® oral solution a prescription laxative for the treatment of constipation Sancuso ® transdermal for the prevention of nausea and vomiting in patients receiving certain types of chemotherapy treatment Vaprisol ® injection to raise serum sodium levels in hospitalized patients with euvolemic and hypervolemic hyponatremia Vibativ ® injection for the treatment of certain serious bacterial infections including hospital acquired and ventilator associated bacterial pneumonia as well as complicated skin and skin structure infections and Talicia ® oral capsule for the treatment of H pylori infection. In addition to product sales the company receives revenue from milestone payments royalties and co promotion arrangements such as its joint commercialization of Talicia with RedHill Biopharma Ltd. International sales are generated through partners like Tabuk Pharmaceutical Manufacturing Company which has exclusive rights to distribute Vibativ in Saudi Arabia and Jordan PiSA Farmaceutica which holds exclusive supply and distribution rights for Caldolor in Mexico and distribution agreements with Vizient Inc. and Premier Inc. that make its products available to a broad base of health care providers. The company also earns other revenue from its subsidiary Cumberland Emerging Technologies which supports early stage product development.

Cumberland Pharmaceuticals Inc. operates in a highly competitive specialty pharmaceutical environment where it contends with other branded products generic alternatives and over the counter therapies. For Kristalose the primary competitors include prescription drugs such as Amitiza ® Movantik ® Linzess ® and Vibrant ® as well as numerous generic lactulose products and over the counter options like MiraLax ®. Vibativ faces competition from other antibiotics used to treat hospital acquired and ventilator associated bacterial pneumonia and complicated skin infections. Sancuso competes with other antiemetic agents used to prevent chemotherapy induced nausea and vomiting. The company’s competitive advantages stem from its focus on concentrated prescriber bases in hospital acute care gastroenterology and oncology its ability to deploy small targeted sales forces its ownership of worldwide rights for most of its brands except Sancuso its established international partnership network and its pipeline of investigational product candidates. Notably Cumberland is advancing ifetroban a novel oral therapy through Phase II studies in Duchenne muscular dystrophy systemic sclerosis and idiopathic pulmonary fibrosis which could provide future growth drivers if successful.

Cumberland Pharmaceuticals Inc. serves hospitals acute care providers gastroenterology and oncology specialists and other health care institutions that prescribe its products. Specific customer relationships include group purchasing organizations such as Vizient Inc. which provides access to more than sixty five percent of acute care providers including ninety seven percent of academic medical centers and Premier Inc. which unites an alliance of approximately four thousand three hundred fifty hospitals and three hundred twenty five thousand other providers and organizations. The company also works with international distribution partners like Tabuk Pharmaceutical Manufacturing Company which has exclusive rights to distribute Vibativ in Saudi Arabia and Jordan PiSA Farmaceutica which holds exclusive supply and distribution rights for Caldolor in Mexico and RedHill Biopharma Ltd. with which it co promotes Talicia in the United States. Additionally Cumberland supplies its products through wholesalers and pharmacies that deliver the medicines to end users such as patients in hospital outpatient clinics and retail pharmacy settings.