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1. Company Snapshot

1.a. Company Description

Cumberland Pharmaceuticals Inc., a specialty pharmaceutical company, focuses on the acquisition, development, and commercialization of prescription products for hospital acute care, gastroenterology, rheumatology, and oncology in the United States and internationally.The company offers Acetadote, an injection for the treatment of acetaminophen poisoning; Caldolor, an injection for the treatment of pain and fever; Kristalose, a prescription laxative oral solution for the treatment of chronic and acute constipation; Omeclamox-Pak for the treatment of Helicobacter pylori infection and duodenal ulcer disease; Vaprisol, an injection for treating euvolemic and hypervolemic hyponatremia; and Vibativ, an 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.It also develops RediTrex injection for the treatment of active rheumatoid, juvenile idiopathic, and severe psoriatic arthritis, as well as disabling psoriasis.


In addition, the company is developing ifetroban, a product candidate that is in phase II clinical trial for the treatment of aspirin-exacerbated respiratory disease, systemic sclerosis, and duchenne muscular dystrophy; and has completed phase II clinical trial for the treatment of hepatorenal syndrome and portal hypertension.Further, it develops a clinical program for the use of ifetroban to treat progressive fibrosing interstitial lung diseases; and a product candidate that is in Phase II clinical trial for cholesterol reducing agent to use in the hospital setting.The company was incorporated in 1999 and is headquartered in Nashville, Tennessee.

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1.b. Last Insights on CPIX

Cumberland Pharmaceuticals Inc.'s recent performance was driven by strong Q4 2024 revenue growth of 11.6% year-over-year, fueled by expanded product labeling, key FDA designations, and new study publications. The company's Phase 2 DMD Study breakthrough results and Vibativ China approval are also significant positives. The approval of Vibativ in China is a major milestone, paving the way for launch in the world's second-largest market. Additionally, the company's Duchenne candidate showed improved heart function in patients with associated heart disease, further solidifying its position in the rare diseases market.

1.c. Company Highlights

2. Cumberland Pharmaceuticals' Q3 2025 Earnings: A Mixed Bag

Cumberland Pharmaceuticals reported a mixed financial performance for the third quarter of 2025. The company's portfolio of FDA-approved brands generated combined revenues of $8.3 million, while year-to-date revenues reached $30.9 million, marking a 12% increase compared to the same period last year. The adjusted loss for the quarter was $0.8 million or $0.06 per share, whereas year-to-date adjusted earnings were $1.9 million or $0.13 per share. Notably, the actual EPS came out at '-0.13' relative to estimates at '-0.01', indicating a significant deviation from analyst expectations.

Publication Date: Nov -26

📋 Highlights
  • Revenue Growth:: Q3 2025 revenue reached $8.3M, with YTD revenue totaling $30.9M, reflecting 12% growth YoY.
  • Strategic Partnership:: $4M investment in Talicia Holdings, Inc. for joint commercialization of Talicia with RedHill Biopharma.
  • Financial Performance:: Q3 adjusted loss of $0.8M ($0.06/share) vs. YTD adjusted earnings of $1.9M ($0.13/share).
  • Operational Cash Flow:: Positive cash flow from operations surged to $5M through September, with $15M in cash and $26M shareholders' equity.

Revenue Breakdown

The company's product revenues for the third quarter were comprised of $1.2 million for Kristalose, $3.2 million for Sancuso, $2.6 million for Vibativ, and $0.9 million for Caldolor. Vibativ was added to a national purchasing agreement with Premier Inc., and the company announced the availability of the Vibativ starter pack through a new supply arrangement with Vizient, signaling progress in the commercialization of its products.

Cash Flow and Balance Sheet

Cumberland generated positive cash flow from operations, which increased to nearly $5 million through September. The company held $66 million in total assets, including $15 million in cash, and liabilities totaled $40 million, with shareholders' equity at $26 million. Cumberland has a bank line of credit providing up to $20 million in capital, with an interest rate based on SOFR, and met the financial covenant at the end of Q3.

Valuation and Outlook

With a P/S Ratio of 0.76 and an EV/EBITDA of 11.09, the market appears to be pricing in moderate growth expectations. However, the significant deviation from analyst EPS estimates suggests that the stock may be subject to volatility. As Cumberland continues to progress its clinical programs, including the ifetroban product candidate, and explores new product opportunities, investors will be watching for signs of sustained growth and improved profitability. The company's ROE of -12.6% and ROIC of -7.58% indicate that there is still work to be done to achieve profitability.

Clinical Pipeline Progress

Cumberland's ifetroban product candidate is being evaluated in several clinical programs, including a Phase II trial for Duchenne muscular dystrophy, systemic sclerosis, and idiopathic pulmonary fibrosis, addressing unmet medical needs. As Chief Financial Officer John Hamm noted, the company is making progress across its approved brands, international contributions, clinical pipeline progress, and new product opportunities, driven by a dedicated team.

3. NewsRoom

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Cumberland Pharmaceuticals Inc. (CPIX) Q3 2025 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

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CUMBERLAND PHARMACEUTICALS REPORTS 12% YEAR-TO-DATE REVENUE GROWTH

Nov -04

Source: prnewswire.com

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CUMBERLAND PHARMACEUTICALS TO ANNOUNCE Q3 2025 FINANCIAL RESULTS & COMPANY UPDATE

Oct -28

Source: prnewswire.com

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CUMBERLAND PHAMACEUTICALS ANNOUNCES THE ADDITION OF AN ESTABLISHED FDA APPROVED PRODUCT TO ITS COMMERCIAL PORTFOLIO

Oct -20

Source: prnewswire.com

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RedHill's Talicia® Secures $4 Million Strategic Investment and U.S. Co-Commercialization Partnership Deal

Oct -20

Source: prnewswire.com

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CUMBERLAND PHARMACEUTICALS' VIBATIV® ADDED TO NATIONAL GROUP PURCHASING AGREEMENT WITH PREMIER, INC.

Oct -13

Source: prnewswire.com

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CUMBERLAND PHARMACEUTICALS ANNOUNCES PRODUCT APPROVAL IN MEXICO

Oct -01

Source: prnewswire.com

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TABUK LAUNCHES VIBATIV® FDA-APPROVED ANTIBIOTIC WITH LIFE-SAVING POTENTIAL IN SAUDI ARABIA

Sep -29

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.10%)

6. Segments

Specialty Pharmaceutical Products

Expected Growth: 8.1%

Cumberland Pharmaceuticals' Specialty Pharmaceutical Products segment is poised for growth driven by increasing demand for branded prescription drugs catering to underserved patient populations, coupled with the company's focus on developing and commercializing innovative treatments.

7. Detailed Products

Caldolor

Ibuprofen injection for the management of mild to moderate pain and reduction of fever.

Kristalose

Lactulose solution for the treatment of constipation.

Omeclamox-Pak

Triple antibiotic therapy for the treatment of Helicobacter pylori infection.

Vancoled

Vancomycin oral solution for the treatment of Clostridioides difficile-associated diarrhea.

Boxaban

Ivabradine oral solution for the treatment of heart failure.

RediTrex

Methotrexate oral solution for the treatment of active rheumatoid arthritis and polyarticular juvenile idiopathic arthritis.

8. Cumberland Pharmaceuticals Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Cumberland Pharmaceuticals Inc. faces moderate threat from substitutes due to the availability of alternative treatments for its products.

Bargaining Power Of Customers

Cumberland Pharmaceuticals Inc. has a diverse customer base, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

Cumberland Pharmaceuticals Inc. relies on a few key suppliers for raw materials, which gives them some bargaining power.

Threat Of New Entrants

The pharmaceutical industry has high barriers to entry, but new entrants can still pose a threat to Cumberland Pharmaceuticals Inc. through innovation and disruption.

Intensity Of Rivalry

The pharmaceutical industry is highly competitive, and Cumberland Pharmaceuticals Inc. faces intense rivalry from established players and new entrants.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 30.73%
Debt Cost 3.95%
Equity Weight 69.27%
Equity Cost 4.83%
WACC 4.56%
Leverage 44.36%

11. Quality Control: Cumberland Pharmaceuticals Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Eagle Pharma

A-Score: 5.0/10

Value: 10.0

Growth: 1.8

Quality: 8.3

Yield: 0.0

Momentum: 10.0

Volatility: 0.0

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Organogenesis Holdings

A-Score: 4.6/10

Value: 8.4

Growth: 3.9

Quality: 5.5

Yield: 0.0

Momentum: 8.0

Volatility: 1.7

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Cyclo Therapeutics

A-Score: 3.8/10

Value: 8.0

Growth: 3.4

Quality: 5.0

Yield: 0.0

Momentum: 5.5

Volatility: 1.0

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Cumberland Pharmaceuticals

A-Score: 3.3/10

Value: 6.9

Growth: 2.3

Quality: 5.2

Yield: 0.0

Momentum: 5.0

Volatility: 0.3

1-Year Total Return ->

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TherapeuticsMD

A-Score: 3.2/10

Value: 7.3

Growth: 4.8

Quality: 5.0

Yield: 0.0

Momentum: 0.5

Volatility: 1.7

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Rockwell Medical

A-Score: 2.6/10

Value: 6.4

Growth: 4.2

Quality: 3.4

Yield: 0.0

Momentum: 0.5

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.39$

Current Price

2.39$

Potential

-0.00%

Expected Cash-Flows