Nasdaq:CPIX
CUMBERLAND PHARMACEUTICALS INC
A clinical-stage biopharmaceutical firm developing novel therapies for rare diseases with a focus on orphan indications in the US and European markets.
Key Metrics
Investment Thesis
Bull Case
The company possesses a promising pipeline of novel therapies targeting rare diseases with high unmet medical need and potential for significant orphan drug exclusivity periods.
Bear Case
Investors should be cautious due to the lack of consistent profitability, negative cash flow from operations exceeding $600M, and a substantial retained earnings deficit of $24.0M.
About CUMBERLAND PHARMACEUTICALS INC
Cumberland Pharmaceuticals is a clinical-stage biopharmaceutical company focused on developing novel therapies to treat rare diseases and orphan indications. The company operates primarily in the United States and Europe, leveraging its proprietary intellectual property pipeline to address unmet medical needs for patients with difficult-to-treat conditions. Revenue generation currently stems from limited commercial sales of specific products while significant resources are directed toward research, development, and regulatory advancement of its pipeline candidates.
Analysis
Management Discussion
Despite generating $37.9M in revenue, the company reported a net loss of $6.4M driven by substantial research and development expenditures totaling approximately $9.8M combined for R&D and marketing expenses.
Industry Overview
The global biopharmaceutical sector is characterized by high R&D costs, stringent regulatory requirements, and rapid technological innovation driven by advancements in gene therapy and personalized medicine.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $42.0M | $39.6M | $37.9M |
| Cost of Revenue | $9.1M | $6.1M | $6.6M |
| Gross Profit | $32.9M | $33.5M | $31.3M |
| Operating Expenses | $38.6M | $43.0M | $37.7M |
| Operating Income | $-5.7M | $-9.6M | $-6.4M |
| R&D | $6.7M | $5.8M | $4.8M |
| G&A | $10.2M | $10.7M | $11.1M |
| Marketing | $16.7M | $18.5M | $17.0M |
| Stock-Based Comp | $447.5K | $365.0K | $301.9K |
| D&A | $5.3M | $4.9M | $4.9M |
| Amortization | $5.1M | $8.1M | $4.7M |
| Other OpEx | $5.1M | $8.1M | $4.7M |
| Non-Operating Income | $123.7K | $3.3M | $-34.0K |
| Interest Expense | $586.0K | $667.9K | $605.5K |
| Interest Income | $98.4K | $286.9K | $334.4K |
| Pre-Tax Income | $-5.6M | $-6.3M | $-6.5M |
| Income Tax | $68.8K | $45.8K | $-22.7K |
| Continuing Ops | $-5.7M | $-6.3M | $-6.4M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $-5.7M | $-6.3M | $-6.4M |
| Minority Interest | $-79.8K | $-51.4K | $36.1K |
| Net to Common | $-5.6M | $-6.3M | $-6.5M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $45.9M | $35.7M | $36.5M |
| Cash & Equivalents | $19.8M | $18.3M | $18.0M |
| Accounts Receivable | $13.2M | $9.8M | $11.7M |
| Inventory | $9.9M | $4.6M | $4.0M |
| Prepaid Expenses | $3.1M | $3.0M | $2.8M |
| Other Current Assets | $0 | $0 | $0 |
| Long-Term Assets | $47.1M | $46.1M | $39.1M |
| PP&E (Net) | $284.0K | $367.9K | $277.4K |
| Goodwill | $914.0K | $914.0K | $914.0K |
| Operating Leases | $5.2M | $6.7M | $6.2M |
| Other LT Assets | $40.6M | $38.1M | $31.8M |
| Total Assets | $92.9M | $81.8M | $75.6M |
| Current Liabilities | $28.6M | $28.0M | $31.6M |
| Accounts Payable | $10.8M | $14.0M | $13.9M |
| Current Debt | — | — | $5.1M |
| Current Leases | $172.9K | $348.1K | $356.5K |
| Deferred Revenue | $614.6K | $220.4K | $207.1K |
| Other Current Liab | $-614.6K | $-220.4K | $-207.1K |
| Long-Term Liabilities | $28.4M | $24.5M | $21.4M |
| LT Operating Leases | $4.6M | $5.3M | $4.9M |
| Other LT Liab | $23.8M | $19.2M | $16.5M |
| Total Liabilities | $57.0M | $52.5M | $53.0M |
| Shareholders' Equity | $36.0M | $29.3M | $22.5M |
| Retained Earnings | $-11.2M | $-17.5M | $-24.0M |
| Total L&E | $92.9M | $81.8M | $75.6M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $-5.7M | $-6.3M | $-6.4M |
| Non-Cash Adjustments | $-5.4M | $14.7M | $5.8M |
| Working Capital Changes | $19.5M | $-2.3M | $-15.3K |
| Cash from Operations | $8.5M | $6.1M | $-612.2K |
| Capital Expenditures | $102.1K | $281.3K | $66.5K |
| Cash from Investing | $-13.7M | $-105.7K | $57.8K |
| Share Buybacks | $1.1M | $740.5K | $579.0K |
| Cash from Financing | $-2.1M | $-7.4M | $196.9K |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $-7.3M | $-1.4M | $-357.4K |
| Beginning Cash | $27.0M | $19.8M | $18.3M |
| Ending Cash | $19.8M | $18.3M | $18.0M |
Frequently Asked Questions
How does CUMBERLAND PHARMACEUTICALS INC make money?
Commercial Sales of Approved Products
What are the main risks for CPIX?
High dependence on a small number of product candidates with limited commercialization success to date.
What is CPIX's competitive advantage?
Specialized expertise in rare disease therapeutics and access to a global network of academic and clinical partners.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.