Cumberland Pharmaceuticals(CPIX) - 2019 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Net revenues for Q4 2019 were $13.7 million, a slight increase from $13.5 million in the prior year, while full-year revenues reached over $47 million, up 17% from approximately $40 million in 2018, achieving the goal of double-digit revenue growth [11][30][31] - Adjusted earnings for Q4 2019 were $1.5 million, consistent with the prior year, while full-year adjusted earnings were $5 million or $0.32 per share, a significant increase from a loss of $0.5 million or $0.03 per share in 2018 [11][31] Business Line Data and Key Metrics Changes - For Q4 2019, revenues by product included $4.4 million for Ethyol, $3.2 million for Kristalose, $2.5 million for Vibativ, $1.7 million for Caldolor, and $1.2 million for Acetadote [30] - Full-year revenues by product included $12.9 million for Kristalose, $12.8 million for Ethyol, $8.7 million for Vibativ, $5.2 million for Caldolor, and $3.8 million for Acetadote [30] Market Data and Key Metrics Changes - The company finalized international agreements for Vibativ with partners in the Middle East, Russia, and India, enhancing its international presence [12] - In China, WinHealth Pharmaceuticals will manage Acetadote and Caldolor brands, contributing to the company's R&D initiatives [12] Company Strategy and Development Direction - The company aims to build a specialty pharma business focused on sustained growth and profitability, with key catalysts including the Vibativ acquisition and the launches of Caldolor and RediTrex [36][37] - The strategic review led to a focus on three key acute care brands: Caldolor, Vibativ, and Vaprisol, which are expected to provide better growth opportunities [12][36] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of the coronavirus outbreak on the economy but expressed confidence in the company's ability to maintain operations and support patient needs [7][38] - The company is targeting double-digit revenue growth for 2020 and aims to deliver positive cash flow while returning capital to shareholders [37] Other Important Information - The company returned U.S. rights to Ethyol and Totect, resulting in $5 million in payments over two years, and will present these as discontinued operations starting in 2020 [34][35] - The company has over $44 million in tax net operating loss carry-forwards from prior stock option exercises [35] Q&A Session Summary Question: Has there been any disruption due to tornadoes or COVID-19? - Management confirmed that the business was largely unaffected by tornadoes and emphasized ongoing efforts to manage operations during the COVID-19 outbreak [40][41] Question: Insight on the next-generation Caldolor launch? - Significant adoption of the new presentation was reported, with hospitals transitioning to the next-generation product due to its convenience [43] Question: How will Clinigen financial consideration be accounted for? - It will be considered discontinued operations, with revenue components included in the top line [44][45]