Cumberland Pharmaceuticals Inc. (NASDAQ:CPIX) notched a move of 3.39% to $5.49 in recent session. The total traded volume was 199. The stock had closed at $5.31 on the previous day. The stock has recorded a 200-day Moving Average of -11.25% and the 50-Day Moving Average is -3.26%. Shares have moved -31.03% from its 1 Year high price and changed 8.50% from its 1 Year low price. The shares registered one year high at $7.96 and the one year low was seen at $5.06.
Cumberland Pharmaceuticals Inc. (NASDAQ:CPIX) reported that it has entered into a definitive agreement to acquire VIBATIV® from Theravance Biopharma. Cumberland Pharmaceuticals Inc. is a specialty pharmaceutical company focused on the delivery of high-quality prescription brands to improve patient care. Theravance Biopharma, Inc. is a diversified pharmaceutical organization with the core purpose of helping improve the lives of patients suffering from serious illness.
VIBATIV® (telavancin) is a patented, FDA approved anti-infective for the treatment of certain serious bacterial infections including hospital-acquired and ventilator-associated bacterial pneumonia and complicated skin & skin structure infections. It addresses a range of Gram-positive bacterial pathogens, including those that are considered difficult-to-treat and multidrug-resistant.
Under the terms of the agreement, Cumberland will assume full responsibility for the product including its marketing, distribution, manufacturing and regulatory activities. Cumberland will support VIBATIV in the United States through its established hospital sales organization. The Company expects to selectively expand its sales force, medical science liaison and corporate teams to ensure the needed support of VIBATIV as well as its oncology and acute care brands.
The financial terms include a $20 million payment to Theravance Biopharma upon closing, a $5 million additional payment in early 2019, and tiered royalties of up to 20% on future US net product sales. Cumberland expects that the addition of VIBATIV will be accretive to the Company’s earnings.
A.J. Kazimi, Chief Executive Officer of Cumberland Pharmaceuticals said “VIBATIV is a lifesaving product for certain difficult to treat infections, and we are honored to be selected to acquire and transition the brand to our existing hospital acute care infrastructure”. “Our immediate plan for VIBATIV is to ensure a smooth transition of the product supply and medical support to current users of the brand. We will then launch our hospital promotion and medical initiatives to help ensure that the product is available to the patients who need it. We are very optimistic about the opportunity that VIBATIV will offer Cumberland.”
Rick E Winningham, chairman and chief executive officer of Theravance Biopharma said “Following an extensive process involving discussions with several interested parties, we determined that Cumberland was best positioned to optimize the value of the VIBATIV brand and ensure the product’s important therapeutic benefits reach as many patients as possible”. “We believe that Cumberland’s track record of successfully marketing and selling hospital-based products, combined with VIBATIV’s existing base of hospital formulary inclusions, positions the company to drive commercial success for VIBATIV as a flagship product.”
The transaction is expected to close in mid-November, pending satisfaction of customary closing conditions. Cumberland will provide additional remarks on its upcoming third quarter 2018 earnings call.
Cumberland Pharmaceuticals Inc. is with Insider ownership of 36.80% and institutional ownership counts to 34.60%. Shares float is 9.15M and outstanding shares are at 16.41M. The float short is currently 1.30% and short ratio is 11.48.