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Cumberland Pharmaceuticals
(NASDAQ:CPIX)
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Rating:53Neutral
Price Target:
$6.00
▼(-9.23% Downside)
Action:Reiterated
Date:07/14/26
The score is held back primarily by weak financial performance: persistent losses, worsening TTM margins, and a sharp step-down in free cash flow despite strong gross margins and manageable leverage. Offsetting this, the earnings call was constructive due to the Apotex transaction expected to improve the balance sheet and reduce operating expenses, and technicals are moderately supportive with the stock above key longer-term moving averages. Valuation remains constrained by negative earnings and no indicated dividend yield.
Positive Factors
Balance sheet strengthened by Apotex transaction
The $100M cash proceeds at closing materially improve liquidity and reduce leverage, enabling the company to fund development programs and reduce near-term financing risk. Longer term, transferring commercial costs to Apotex lowers operating burn and supports a capital-light, R&D-focused strategy.
Negative Factors
Persistent net losses and deteriorating margins
Widening losses and negative returns on equity signal limited operating profitability and capital erosion risk if losses persist. This undermines the company's ability to self-fund trials and increases dependence on one-time proceeds or external financing to sustain long-term development programs.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strengthened by Apotex transaction
The $100M cash proceeds at closing materially improve liquidity and reduce leverage, enabling the company to fund development programs and reduce near-term financing risk. Longer term, transferring commercial costs to Apotex lowers operating burn and supports a capital-light, R&D-focused strategy.
Read all positive factors
Cumberland Pharmaceuticals Key Performance Indicators (KPIs)
Any
Net Revenue by Product
Breaks down sales by individual drug or product, showing which items drive total revenue and how dependent the company is on a few offerings. For Cumberland Pharmaceuticals, product-level revenue highlights concentration risk, the effect of pricing or reimbursement shifts, and whether new launches or partnerships are expanding the business and supporting sustainable growth.
Breaks down sales by individual drug or product, showing which items drive total revenue and how dependent the company is on a few offerings. For Cumberland Pharmaceuticals, product-level revenue highlights concentration risk, the effect of pricing or reimbursement shifts, and whether new launches or partnerships are expanding the business and supporting sustainable growth.
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The Fly
The FlyCumberland Pharmaceuticals (CPIX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$102.03M
Dividend YieldN/A
Average Volume (3M)27.29K
Price to Earnings (P/E)―
Beta (1Y)-0.03
Revenue Growth2.08%
EPS Growth-106.57%
CountryUS
Employees93
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.49
Shares Outstanding14,983,107
10 Day Avg. Volume30,352
30 Day Avg. Volume27,288
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)2.39
Price to Sales (P/S)1.34
P/FCF Ratio12.31
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Cumberland Pharmaceuticals Business Overview & Revenue Model
Company Description
Cumberland Pharmaceuticals Inc. functions as a specialized pharmaceutical enterprise, primarily involved in the procurement, advancement, and commercialization of prescription medications. Its strategic focus areas include acute hospital care, gas...
How the Company Makes Money
Cumberland makes money primarily by selling its branded prescription pharmaceuticals. Revenue is generated when its products are purchased by hospitals, clinics, pharmacies, and other healthcare channels, with net sales reflecting typical industry...
Cumberland Pharmaceuticals Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call highlights meaningful strategic progress: a transformational $100M acquisition agreement that unlocks near-term value, regulatory wins (expanded Caldolor label and facility clearance), commercialization progress (Talicia promotion, Vibativ China shipment) and an encouraging development pipeline (ifetroban with Fast Track and robust safety data). These positives are tempered by a modest Q1 revenue base, a GAAP net loss (~$3.3M) and limited cash on hand until the transaction closes, plus the company’s deliberate pivot away from pursuing double-digit revenue growth in 2026. On balance, the call emphasizes value realization and a clear strategic plan to focus on development, with the transaction expected to materially strengthen the balance sheet and reduce operating expense burden—leading to a favorable overall tone.Positive Updates
Transformational Strategic Transaction with Apotex
Apotex will acquire Cumberland's marketed U.S. commercial portfolio for $100 million in cash at closing, plus $9 million for inventory, transition service fees and a future sales-tied milestone — a transaction management expects will materially strengthen the balance sheet and unlock near-term shareholder value.
Negative Updates
Net Loss and Operating Expense Pressure
Q1 operating expenses were $12.3 million, producing a GAAP net loss of approximately $3.3 million. After adding back noncash items, adjusted loss was $1.9 million, or $0.13 per share.
Read all updates
Q1-2026 Updates
Positive
Negative
Transformational Strategic Transaction with Apotex
Apotex will acquire Cumberland's marketed U.S. commercial portfolio for $100 million in cash at closing, plus $9 million for inventory, transition service fees and a future sales-tied milestone — a transaction management expects will materially strengthen the balance sheet and unlock near-term shareholder value.
Read all positive updates
Company Guidance
Management guided that, given the announced strategic transaction with Apotex, Cumberland is no longer targeting double‑digit revenue growth for 2026 and expects materially lower operating expenses after closing because Apotex will assume sales, marketing, medical, manufacturing and FDA fees; at closing Cumberland expects $100 million cash (subject to shareholder approval), $9 million for inventory, ongoing monthly transition service fees and future milestone payments. For context, Q1 combined brand revenue was $9.1 million (Kristalose $1.0M; Sancuso $2.9M; Vibativ $2.1M; Caldolor $1.0M; Talicia $1.9M), total operating expenses were $12.3M, net loss was about $3.3M, adjusted loss was $1.9M or $0.13 per share, cash flow from operations was $0.387M, total assets were $71M (cash $11M), liabilities $49.7M (including $5M credit facility) and shareholders’ equity $21.6M. Management also said 2026 clinical spending is expected to remain essentially unchanged, noted over $53M of tax net operating losses versus a $30M tax basis in the assets (supporting modest taxes on the deal), and highlighted pipeline progress (ifetroban dosed in ~1,400 subjects, Fast Track/orphan/rare pediatric designations) and product milestones such as FDA‑expanded Caldolor labeling and a Vaprisol relaunch expected this year.Cumberland Pharmaceuticals Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
56
Neutral
Cash Flow
48
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 41.94M | 44.52M | 37.87M | 39.55M | 42.01M | 35.99M |
| Gross Profit | 34.76M | 37.85M | 31.28M | 33.49M | 32.89M | 27.17M |
| EBITDA | -1.82M | 2.96M | 182.42K | 2.49M | 332.92K | -857.83K |
| Net Income | -7.23M | -2.84M | -6.48M | -6.28M | -5.57M | -3.51M |
Balance Sheet | ||||||
| Total Assets | 71.00M | 76.82M | 75.58M | 81.78M | 92.93M | 84.46M |
| Cash, Cash Equivalents and Short-Term Investments | 11.01M | 11.44M | 17.96M | 18.32M | 19.76M | 27.04M |
| Total Debt | 10.07M | 10.18M | 20.57M | 18.43M | 20.96M | 16.06M |
| Total Liabilities | 49.69M | 52.28M | 53.04M | 52.52M | 56.95M | 41.86M |
| Stockholders Equity | 21.64M | 24.88M | 22.85M | 29.60M | 36.27M | 42.81M |
Cash Flow | ||||||
| Free Cash Flow | 1.32M | 4.83M | -791.90K | 5.64M | 6.38M | 5.99M |
| Operating Cash Flow | 1.42M | 4.93M | -612.19K | 6.09M | 8.45M | 6.34M |
| Investing Cash Flow | -3.54M | -4.71M | 57.84K | -105.69K | -13.67M | -501.89K |
| Financing Cash Flow | -1.98M | -6.75M | 196.90K | -7.42M | -2.06M | -3.55M |
Cumberland Pharmaceuticals Technical Analysis
Neutral
6.61
Price Trends
6.21
Positive
4.90
Positive
4.17
Positive
Market Momentum
0.34
Positive
50.22
Neutral
49.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPIX, the sentiment is Neutral. The current price of 6.61 is below the 20-day moving average (MA) of 6.82, above the 50-day MA of 6.21, and above the 200-day MA of 4.17, indicating a neutral trend. The MACD of 0.34 indicates Positive momentum. The RSI at 50.22 is Neutral, neither overbought nor oversold. The STOCH value of 49.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CPIX.
Cumberland Pharmaceuticals Risk Analysis
Cumberland Pharmaceuticals disclosed 1 risk factors in its most recent earnings report. Cumberland Pharmaceuticals reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cumberland Pharmaceuticals Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $1.84B | 19.72 | 17.32% | ― | 37.03% | ― | |
70 Outperform | $888.47M | 11.78 | 10.23% | ― | -1.39% | -41.70% | |
69 Neutral | $1.16B | 15.15 | 26.74% | ― | 19.88% | 73.61% | |
69 Neutral | $1.28B | -913.11 | -5.68% | ― | 79.89% | 68.13% | |
68 Neutral | $1.05B | 219.57 | 0.73% | ― | 4.57% | ― | |
53 Neutral | $102.03M | -13.77 | -28.75% | ― | 2.08% | -106.57% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
CPIX
Cumberland Pharmaceuticals
6.73
3.28
95.07%
PCRX
Pacira Pharmaceuticals
26.97
5.88
27.88%
ANIP
ANI Pharmaceuticals
80.43
17.08
26.96%
AMPH
Amphastar Pharmaceuticals
20.38
-0.57
-2.72%
COLL
Collegium Pharmaceutical
35.98
6.12
20.50%
ETON
Eton Pharmaceuticals
49.03
34.87
246.26%
Cumberland Pharmaceuticals Corporate Events
Business Operations and StrategyStock BuybackDividends
Cumberland Pharmaceuticals Announces Special Dividend, Share Buyback
Positive
Jul 13, 2026
On July 13, 2026, Cumberland Pharmaceuticals announced that its board declared a special cash dividend of $1.50 per share, payable on or about July 31, 2026, to shareholders of record as of July 23, 2026, funded by stronger-than-expected net cash ...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and FinancingShareholder Meetings
Cumberland Refocuses on Rare Disease Pipeline After Asset Sale
Positive
Jul 1, 2026
On June 29, 2026, Cumberland Pharmaceuticals repaid and terminated its revolving credit loan with Pinnacle Bank, eliminating about $5.3 million in obligations and associated liens, while on July 1, 2026, it amended its asset sale agreement with Nu...
Business Operations and StrategyM&A TransactionsShareholder Meetings
Cumberland Shareholders Approve Strategic Asset Sale to Apotex
Positive
Jun 25, 2026
On June 24, 2026, Cumberland Pharmaceuticals shareholders met in Nashville to vote on a strategic transaction with Apotex Inc. The deal involves integrating Cumberland’s commercial products with the U.S. branded business of an Apotex affilia...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.