Morgan Joseph Reiterates a 'Buy' on Cumberland Pharmaceuticals (CPIX)

November 11, 2009 8:42 AM EST

Morgan Joseph reiterates a 'Buy' rating on Cumberland Pharmaceuticals (Nasdaq: CPIX)

Morgan analyst says, "Following Q309, we are more excited about Cumberland Pharma shares due to three reasons: (1) shares are much better valued following underperformance in the past few weeks; (2) we are more confident about Caldolor's launch and its leverage on the bottom-line; and (3) we are encouraged by the company's initiative to file a patent based on IV usage of the drug.

"Cumberland has been profitable for the past five years; the current quarter was no different, despite the additional sales force for Caldolor's launch. The quarter's results also confirmed that there is significant leverage from Caldolor sales on Cumberland's bottom line because of Cumberland's focused sales effort in the hospital acute care setting, which has concentrated physician prescriber bases. Going forward, we believe the leverage will likely improve as the sales force expansion from 27 to 77 individuals not only provides a strong launch pad for Caldolor, but also boosts Acetadote's sales growth prospects."

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