Targeted Medical Pharma’s President and COO David Silver Comments on Study Showing µ-Opiod Receptors Impaired in Fibromyalgia Patients

Los Angeles, CA, May 31, 2013 — David Silver, M.D., President and Chief Operating Officer at Targeted Medical Pharma, Inc. (OTCQB: TRGM), a biotechnology company that develops and distributes prescription medical foods, issued the following statement regarding a University of Michigan study highlighted in Pain Medicine News demonstrating the connection between μ-opioid receptor binding and the brain’s response to fibromyalgia pain:

“The University of Michigan study confirms widespread consensus within the medical community that fibromyalgia patients respond poorly to narcotics. Additionally, there is no medical evidence showing narcotics actually work to treat the chronic pain of fibromyalgia. As pointed out by one of the study researchers, opioid receptors do not work properly among fibromyalgia patients, and as a result, these receptors have no binding effect when introduced to narcotics causing no parasympathetic function to occur.

“Many people with fibromyalgia, however, turn to non-pharmaceutical alternatives such as medical foods, which treat the nutritional deficiencies in chronic disease. As a practicing board-certified rheumatologist and internist, I have prescribed these medications to patients for the treatment of fibromyalgia. Patients diagnosed with fibromyalgia may have an increased need for precursors of the neurotransmitters nitric oxide, GABA (gamma-amino butyric acid), serotonin, and acetylcholine. These include amino acids and nutrients such as arginine, glutamate, tryptophan, acetyl-L-carnitine, and choline. 

“Each medical food used in the dietary management of fibromyalgia contains the specific elements the body requires to stimulate the neurotransmitters that support the activities mediated by the autonomic nervous system. The result is a more efficacious treatment for fibromyalgia patients with little or no side effects since their ingredients are Generally Recognized as Safe by the FDA.” 

For more detailed information about the University of Michigan Study please click here.

About Dr. David Silver

Dr. Silver has conducted more than 100 clinical trials and is a national expert on pain, fibromyalgia and rheumatologic diseases. He is a practicing board-certified rheumatologist and internist, and served as clinical chief of rheumatology and director of the chronic pain rehabilitation program at Cedars Sinai Medical Center in Los Angeles.  Dr. Silver remains active in academia as an associate clinical professor of medicine at UCLA. He received a Bachelor of Arts degree in medical sciences with a minor in economics from Boston University.  After earning a medical degree from Boston University’s School of Medicine, he completed his residency in Internal Medicine at Northwestern University’s School of Medicine, with a fellowship in Rheumatology at Cedars Sinai Medical Center.

About Targeted Medical Pharma, Inc.

Targeted Medical Pharma, Inc. is a Los Angeles-based biotechnology company that develops prescription medical foods  for the treatment of chronic disease, including pain syndromes, peripheral neuropathy, hypertension, obesity, sleep and cognitive disorders. The company manufactures 10 proprietary prescription-only medical foods, as well as 48 convenience packed kits, which pair a medical food and branded or generic pharmaceutical. These prescription medical foods and therapeutic systems are sold to physicians and pharmacies in the U.S. and the Middle East through the company’s subsidiary, Physician Therapeutics. These proprietary medications represent a novel approach to the management of certain disease states, focusing on safety and efficacy without the deleterious side effects of traditional, high dose prescription drugs. The company is developing nutrient-based systems for oral stimulation of progenitor stem cells that differentiate into neurons, red blood cells, pituitary hormones including IGF-I. Targeted Medical Pharma also provides diagnostic testing as well as billing and collection services on behalf of dispensing physicians.  

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Targeted Medical Pharma to Present at Marcum Microcap Conference

LOS ANGELES, May 22, 2013 — Targeted Medical Pharma, Inc. (OTCBB: TRGM), a biotechnology company that develops and distributes prescription medical foods to physicians and pharmacies, today announced that its Chief Executive and Chief Science Officer, Dr. William Shell, will be presenting at the Marcum MicroCap Conference.  

The conference will be held on Thursday, May 30, 2013 at the Grand Hyatt Hotel, located at 109 East  42nd Street in New York City.  Dr. Shell’s presentation will take place at 4:30 p.m. EST in the Estate 5 Biotech room. 
 
The event will host nearly 100 publicly traded companies with capitalizations under $500 million. The conference is estimating to draw more than 1,000 attendees including senior personnel from the presenting public companies, leading institutional investors, directors, bankers and service providers to the microcap marketplace. The conference will also feature panels on subjects highly relevant to small-cap corporate finance.

For full event details and registration information, please go to: www.marcumllp.com/microcap.

About Targeted Medical Pharma, Inc.

Targeted Medical Pharma is a Los Angeles-based biotechnology company that develops prescription medical foods  for the treatment of chronic disease, including pain syndromes, peripheral neuropathy, hypertension, obesity, sleep and cognitive disorders. The company manufactures 10 proprietary prescription-only medical foods, as well as 48 convenience packed kits, which pair a medical food and branded or generic pharmaceutical.  These prescription medical foods and therapeutic systems are sold to physicians and pharmacies in the United States through the company’s subsidiary, Physician Therapeutics. These proprietary medications represent a novel approach to the management of certain disease states, focusing on safety and efficacy without the deleterious side effects of traditional, high dose prescription drugs.  The company is developing nutrient-based systems for oral stimulation of progenitor stem cells that differentiate into neurons, red blood cells, pituitary hormones including IGF-I. Targeted Medical Pharma also provides a billing and collection services on behalf of dispensing physicians.  

Forward Looking Statement

This press release may contain forward-looking statements related to the company’s business strategy, outlook, objectives, plans, intentions or goals. The words “may,” “will,” “should,” “plans,” “explores,” “expects,” “anticipates,” “continue,” “estimate,” “project,” “intend,” and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Actual results could differ materially. Targeted Medical Pharma expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company’s expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.

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Targeted Medical Pharma Reports 2013 First Quarter Results

— Company Reports Record Revenue through Continued Execution of Growth Plan —

Los Angeles, May 15, 2013 — Targeted Medical Pharma, Inc. (OTCQB: TRGM), a biotechnology company that develops and distributes prescription medical foods, convenience kits and generic pharmaceuticals to physicians and pharmacies, today announced financial results for its first quarter ended March 31, 2013. The Company posted record quarterly revenue of $2.811 million for the first quarter ended March 31, 2013, compared to revenue of $1.375 million for the first quarter ended March 31, 2012, an increase of 104.4 percent.

“I am thrilled to report the Company’s strongest recorded quarterly revenue as we continue to execute on our growth strategy,” commented William Shell, M.D., Chief Executive Officer and Chief Science Officer of Targeted Medical Pharma. “The expansion and application of current initiatives, and our ability to enter new markets, has resulted in increased revenue for all of our business lines, and helped us generate our fifth consecutive quarter of revenue growth. The actual growth in revenue was over one-hundred percent in the first quarter of 2013, compared to the first quarter of 2012, and we were cash flow positive from operations as well. I am optimistic about our growth and the team we have in place as we continue to strengthen our product pipeline and expand our sales and marketing efforts, while at the same time contain our operating expenses as we work to expand market share and enter new markets. I am also very encouraged with the expansion of our product line to support the needs of our customers.”

Financial Overview: 
Revenues for the three months ended March 31, 2013 were $2.811 million, compared to $1.375 million for the three months ended March 31, 2012, an increase of $1.436 million, or 104.4 percent. The increase in revenue was primarily attributed to a significant increase in prescriptions among workers compensation and commercial providers, along with improved collection rates for new and aged receivables.

Gross profit for the three months ended March 31, 2013 was $1.912 million, compared to $0.740 million for the three months ended March 31, 2012, an increase of $1.172 million, or 158.3 percent. The increase in gross profit was attributed to increased revenues resulting from a significant increase in collections and to a lesser extent payments associated with the Cambridge contract.

The net loss for the three months ended March 31, 2013 was $0.270 million and the diluted loss per share was $0.01, compared to a net loss of $0.976 million and diluted loss per share of $0.04 for the same period in 2012. The decrease in net loss was attributed to higher revenue combined with modest growth in operating expenses.

As of March 31, 2013 the Company had $34.6 million of unrecognized accounts receivables, not on the balance sheet due to our policy of not recognizing revenue for delivered product with a long collection cycle, until the cash is received. This unrecognized asset has the potential to become revenue in the future as the Company’s billing and collection subsidiary continues to collect accounts receivable on behalf of physicians using the Company’s managed business model and hybrid business model, for patient claims.

Adjusted EBITDA, a non-GAAP measure set forth in the table below, was negative $117 thousand for the three month period ended March 31, 2013, compared to negative $1.284 million for the three month period ended March 31, 2012, which is a reduction of $1.167 million or 91 percent.

“We’re very pleased to have generated positive cash flow from operations during the quarter,” said David Silver, M.D., President and Chief Operating Officer of Targeted Medical Pharma. “The results from the Cambridge agreement initiated in the first quarter of 2013, as well as our cost containment efforts, have established a good cash flow trajectory for the Company. We are focused on improving our margins and continue to leverage efficiencies in our distribution models, both of which contributed to a 68 percent operating loss improvement, as compared to the first quarter of 2012. We continue to build brand recognition in the medical community and are seeing increased demand from patients seeking our prescription medical foods. As we move forward with continued development of new products, we will remain focused on sustaining the growth reported for the first quarter.”

First Quarter Highlights:

  • Expansion of private insurance market business
  • Expansion of California Worker’s Compensation market business
  • Issuance of our billing patent related to point of care medication dispensing and billing
  • Submission of four new patent applications related to the oral stimulation of stem cells, particularly for the oral stimulation of progenitor red blood cell stem cells for treatment of chronic anemia
  • Expansion of Agreement with Cambridge Medical Funding
  • On April 19, 2013 the Company’s Registration Statement on Form S-1/A which registers up to 25,723,395 shares of common stock for resale was declared effective. The registration only involved existing shares and no new shares were issued. Of the 25,723,395 shares, 14,590,065 shares are owned by Company Insiders subject to Rule 144

Continued 2013 Strategic Initiatives:

  • Expansion of sales and marketing efforts to increase prescribing in the Workers’ Compensation and private insurance markets
  • Conduct additional clinical trials for current and pipeline products including Theramine®, and new formulas for red blood cell production and nasal decongestion.
  • Continue development of new stem cell products for neuropathy, chronic anemia, and diabetes

Detailed financial data information is available on Targeted Medical Pharma’s annual report (Form 10-Q), which is accessible on the Company’s website at www.tmedpharma.com and on the SEC’s website at sec.gov/edgar.shtml.

About Targeted Medical Pharma, Inc. 
Targeted Medical Pharma is a Los Angeles-based biotechnology company that develops prescription medical foods for the treatment of chronic disease, including pain syndromes, peripheral neuropathy, hypertension, obesity, sleep and cognitive disorders. The company manufactures 10 proprietary prescription-only medical foods, as well as 48 convenience packed kits, which pair a medical food and branded or generic pharmaceutical. These prescription medical foods and therapeutic systems are sold to physicians and pharmacies in the United States through the company’s subsidiary, Physician Therapeutics. These proprietary medications represent a novel approach to the management of certain disease states, focusing on safety and efficacy without the deleterious side effects of traditional, high dose prescription drugs. The company is developing nutrient-based systems for oral stimulation of progenitor stem cells that differentiate into neurons, red blood cells, pituitary hormones including IGF-I. Targeted Medical Pharma also provides a billing and collection services on behalf of dispensing physicians.

Reasons for Presentation of Non-GAAP Financial Measures
Statements made in this release include a non-GAAP financial measure. Such information is provided as additional information, not as an alternative to our consolidated financial statements presented in accordance with GAAP, and is intended to enhance an overall understanding of our current financial performance. We believe the non-GAAP financial measure provides useful information to management, investors and prospective investors by excluding certain charges and other amounts that we believe are not indicative of our core operating results. The non-GAAP measure is included to provide management, our investors and prospective investors with an alternative method for assessing our operating results in a manner that is focused on the performance of our ongoing operations and to provide a more consistent basis for comparison between quarters. The non-GAAP financial measure presented is Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, derivative revaluation, stock option compensation expense and stock issued for services). This term might not be calculated in the same manner as, and thus might not be comparable to, similarly titled measures reported by other companies. The financial statement tables that accompany this press release include reconciliation of the non-GAAP financial measure to the most directly comparable GAAP financial measure.


Forward Looking Statement 
This press release may contain forward-looking statements related to the company’s business strategy, outlook, objectives, plans, intentions or goals. The words “may,” “will,” “should,” “plans,” “explores,” “expects,” “anticipates,” “continue,” “estimate,” “project,” “intend,” and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Actual results could differ materially. Targeted Medical Pharma expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company’s expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.

Theramine® is a trademark of Targeted Medical Pharma Inc.

Click here to download press release.

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