Targeted Medical Pharma Reports Fourth Quarter and Fiscal Year 2013 Financial Results

Year-Over-Year Revenue Increase of 31% and Gross Profit Increase of 60% for the year ended December 31, 2013

Los Angeles, CA, March 31, 2014 — Targeted Medical Pharma, Inc. (OTCQB: TRGM), today announced financial results for its fourth quarter and fiscal year ended December 31, 2013.  The Company posted increased revenues, gross profit and a reduction in net loss before interest, taxes, depreciation and amortization, stock based compensation (Adjusted EBITDA*) on both a year-over-year and a quarterly basis.

Financial Overview

Year-over-Year Comparison:

Improved financial results for the year ended December 31, 2013 compared to the year ended December 31, 2012

  • Total revenue of $9.6 million, a 31% improvement from $7.3 million during the year ended December 31, 2012.
  • Total gross profit of $6.6 million, a 60% improvement from $4.1 million during the year ended December 31, 2012.
  • Adjusted EBITDA of $(2.7) million, a 41% improvement from ($4.5) million during the year ended December 31, 2012.

Sequential Comparison:

Improved financial results for the quarter ended December 31, 2013 compared to the quarter ended September 30, 2013

  • Total revenue of $2.6 million, a 20% improvement from $2.2 million during the quarter ended September 30, 2013.
  • Total gross profit of $1.9 million, a 22% improvement from $1.6 million during the quarter ended September 30, 2013.
  • Adjusted EBITDA of $0.1 million, a 112% improvement from ($1.1) million during the quarter ended September 30, 2013.

Net loss for the year ended December 31, 2013, was $9.3 million compared to a net loss of $9.6 million for the year ended December 31, 2012.  During the years ended December 31, 2013 and 2012, the Company’s net loss consisted of a significant amount of non-cash charges.  For instance, the net loss for the year ended December 31, 2013 was negatively affected by the Company’s decision to provide a valuation allowance of $7.4 million for its deferred tax assets.  If the Company had not recorded a full valuation allowance, then the Company’s net loss would have been $1.9 million.

Due to the impact of these non-cash charges on the Company’s reported net loss, the Company places greater emphasis on improvements in Adjusted EBITDA.  A reconciliation of net loss to Adjusted EBITDA is reflected in the following table:

2013 year end table

Management Comments

“The fourth quarter and year ended December 31, 2013, were decisive periods for our Company.   The implementation and growth of new business verticals coupled with improvements in operations efficiency, resulted in accelerated reimbursement rates for our products and reduced operating costs.” said William Shell, M.D., Chief Executive Officer and Chief Science Officer of Targeted Medical Pharma “I firmly believe that executing our strategic initiatives in both sales and operations continues to add value for our shareholders. The fourth quarter was our eighth consecutive quarter of revenue growth, on a year-over-year basis.  I believe that our focus on revenue growth, through accelerated payment terms, and cost containment is beginning to be reflected in our financial results, as evidenced by our overall profitability during the quarter ended December 31, 2013, of $0.5 million.  Since our revenues are, in part, dependent upon the timing of our cash receipts we are at risk of significant fluctuations in our reported results.  Despite these quarterly fluctuations, I remain confident in our ability to continue to grow our business.”

2014 Strategic Initiatives:

  • Expansion of sales and marketing efforts to increase utilization, awareness and acceptance by physicians, patients and payers with an emphasis on expansion into markets that provide near-term revenue growth opportunities;
  • Conduct additional clinical trials for current and pipeline products including a new medical food indicated for the dietary management of Autism and Autism Spectrum Disorders, as well as a post market study with the military joint command examining the efficacy of Theramine for the reduction of back pain within the active duty military;
  • Development of the Company’s direct to consumer business that includes dietary and nutritional supplements.

A copy of Targeted Medical Pharma’s annual report on Form 10-K for the year ended December 31, 2013, filed with the Securities and Exchange Commission on March 31, 2014, is accessible on the Company’s website at www.tmedpharma.com and at the SEC’s website at www.sec.gov.

About Targeted Medical Pharma, Inc.

Targeted Medical Pharma, Inc. is a Los Angeles-based biotechnology company that develops  medical foods for the treatment of chronic disease, including pain syndromes, peripheral neuropathy, hypertension, obesity, sleep and cognitive disorders. The company also develops a line of dietary supplements designed to support health and wellness.  The company manufactures 10 proprietary medical foods, and recently launched its first dietary supplement, Clearwayz™.  The products are sold directly to physicians and pharmacies in the U.S. The company also is developing nutrient-based systems for oral stimulation of progenitor stem cells that differentiate into neurons, red blood cells, pituitary hormones including IGF-I.

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.  Forward-looking statements also include any other passages that relate to expected future events or trends that can only be evaluated by events or trends that will occur in the future.  The forward-looking statements are based on the opinions and estimates of management at the time the statements were made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements.  These risks and uncertainties include, among others, the risk of unforeseen changes in customer budgets, unanticipated loss of customers or delays in anticipated orders, the potential failure to attract new customers due to the company’s inability to competitively market its products and services, the risk of fluctuating demand for the company’s product, the potential failure to maintain desired customer relationships, costs and risks related to development of technologies.  More information about factors that could cause actual results to differ materially from those predicted in Targeted Medical Pharma’s forward-looking statements is set out in its annual report on Form 10-K for the year ended December 31, 2013, filed with the Securities and Exchange Commission.  Readers are cautioned not to place undue reliance upon these forward-looking statements, which speak only as to the date of this release.  Except as required by law, Targeted Medical Pharma, undertakes no obligation to update any forward-looking or other statements in this press release, whether as a result of new information, future events or otherwise.

*Adjusted EBITDA refers to a financial measure that is more fully defined as net loss before net interest and other income, interest expense, income taxes, depreciation and amortization, and stock based compensation.  Adjusted EBITDA is a non-GAAP financial measure which management believes reflects the Company’s ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in the Company’s business, as they exclude certain income or other expenses that are not reflective of ongoing operating results.  Adjusted EBITDA is commonly used to analyze companies on the basis of leverage and liquidity.  However, Adjusted EBITDA is not a measure determined under GAAP in the United States of America and may not be comparable to similarly titled measures reported by other companies.  Adjusted EBITDA should not be construed as a substitute for net loss or as a better measure of liquidity than cash flow from operating activities, which are determined in accordance with GAAP.  Management believes that Adjusted EBITDA is a useful measure for analyzing operating results, and uses this non-GAAP financial measure to review past results and forecast future results.

 

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Healthcare Executive Dr. Thomas Wenkart Joins Targeted Medical Pharma’s Board of Directors

Los Angeles, March 10, 2014 –Targeted Medical Pharma, Inc. (OTCQB:TRGM) today announced that Dr. Thomas Wenkart, Chief Executive and Chairman at Macquarie Health Corporation, has joined the company’s board of directors.

A nationally respected expert in healthcare, medical and hospital administration in Australia, Dr. Wenkart established Macquarie Health Corporation in Sydney, Australia in 1976. His organization owns and operates eleven private hospitals in Australia, and is one of the nation’s leading providers of healthcare services.

Dr. Wenkart is a graduate of the Sydney University School of Medicine. In 1976, he established the Health Care Research Institute and the Wenkart Foundation which supports the Arts and Health Sciences with the credo of “community benefits in the shortest possible time.” In 2007 the Wenkart Foundation established the Wenkart Chair of Endothelium Medicine at Sydney University and the Centenary Institute.  Dr. Wenkart has a unique understanding and interest in, medical computing, electronic health records, biomedical technology, and videodermoscopy systems. In 2003, he acquired Derma Medical Systems in Austria.

“We are very pleased to have Dr. Wenkart join our company. He brings a great deal of healthcare and business experience to our board,” said Dr. William Shell, Chief Executive Officer and Chief Science Officer at Targeted Medical Pharma. “His expertise in operations and management systems will help the continued growth and execution of strategic initiatives of our company in the United States and abroad.”

Twitter: @tmedpharma

Facebook: www.facebook.com/targetedmedicalpharma

About Targeted Medical Pharma, Inc.

Targeted Medical Pharma, Inc. is a Los Angeles-based biotechnology company that develops  medical foods for the treatment of chronic disease, including pain syndromes, peripheral neuropathy, hypertension, obesity, sleep and cognitive disorders. The company also develops a line of dietary supplements designed to support health and wellness.  The company manufactures 10 proprietary medical foods, and recently launched its first dietary supplement, Clearwayz™.  The products are sold directly to physicians and pharmacies in the U.S. The company also is developing nutrient-based systems for oral stimulation of progenitor stem cells that differentiate into neurons, red blood cells, pituitary hormones including IGF-I.

Forward Looking Statement

This press release may contain forward-looking statements related to Targeted Medical Pharma’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 disclaims 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 Launches E-Prescribe Platform for Theramine®

Improving Provider and Patient Access to Safe and Effective Pain Medications

Los Angeles, CA, March 4, 2014 — Targeted Medical Pharma, Inc. (OTCQB: TRGM), announced today the launch of a new e-prescribing platform for the medical food, Theramine. The secure online e-prescribing portal is available to healthcare providers in the United States, interested in a clinically validated, peer reviewed, non-pharmacologic alternative to narcotic and NSAID pain medications for patients suffering from pain syndromes.

Theramine is a medical food indicated for the dietary management of pain syndromes, and has been the subject of two double-blind, randomized, multi-center trials, which compared Theramine to low dose naproxen and ibuprofen. 256 subjects participated in the two studies across 10 independent sites that were randomized for treatment to receive Theramine alone (two capsules twice daily), NSAID or a combination of both. In both studies, Theramine showed a statistically significant reduction in inflammation and improvement in low back pain than either naproxen at 250mg daily or ibuprofen at 400mg daily.

“Clinical evidence suggests that by addressing the increased amino acid requirements of pain syndromes you can significantly improve pain perception and reduce inflammation,” said William Shell M.D., CEO and Chief Science Officer at Targeted Medical Pharma. “Theramine is a very useful clinical tool for physicians interested in managing pain and inflammation without the GI or cardiovascular side effects associated with NSAIDs or the addictive potential of narcotics.”

Visit https://tmedpharma.com/secure/eprescribe for more information about e-prescribing Theramine or any other Targeted Medical Pharma products.

Twitter: @tmedpharma

Facebook: www.facebook.com/targetedmedicalpharma

About Targeted Medical Pharma, Inc.

Targeted Medical Pharma, Inc. is a Los Angeles-based biotechnology company that develops  medical foods for the treatment of chronic disease, including pain syndromes, peripheral neuropathy, hypertension, obesity, sleep and cognitive disorders. The company also develops a line of dietary supplements designed to support health and wellness.  The company manufactures 10 proprietary medical foods, and recently launched its first dietary supplement, Clearwayz™.  The products are sold directly to physicians and pharmacies in the U.S. The company also is developing nutrient-based systems for oral stimulation of progenitor stem cells that differentiate into neurons, red blood cells, pituitary hormones including IGF-I.

 Forward Looking Statement

This press release may contain forward-looking statements related to Targeted Medical Pharma’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 disclaims 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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