Targeted Medical Pharma to Present at the Third Annual Marcum MicroCap Conference

Los Angeles, CA –  May 23, 2014 – Targeted Medical Pharma (OTCQB: TRGM), a leader in the medical food manufacturing sector, announced today that it will be a featured presenter at the 3rd Annual Marcum MicroCap Conference on Thursday, May 29, 2014 in New York City at the Grand Hyatt Hotel.

The Company’s presentation by William Shell M.D., Chief Executive Officer and Chief Science Officer, is scheduled to begin at 11:30 a.m. ET.

The annual Marcum MicroCap Conference is a signature showcase for superior quality, under-followed public companies with less than $500 million in market capitalization. For more information or to register, please visit the conference website at http://www.marcumllp.com/microcap or download the free official conference app for the iPhone, iPad, or for Android mobile devices in Apple’s App Store and the Google Play Market.

About Targeted Medical Pharma

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.

About Marcum LLP

Marcum LLP is one of the largest independent public accounting and advisory services firms in the United States. Ranked #15 nationally, Marcum LLP offers the resources of 1,300 professionals, including over 160 partners, in 23 offices throughout the U.S., Grand Cayman and China. Headquartered in New York City, the Firm’s presence runs deep, with full-service offices strategically located in major business markets. Marcum is a member of the Marcum Group, an organization providing a comprehensive range of professional services spanning accounting and advisory, technology solutions, wealth management, and executive and professional recruiting. The Marcum Group companies include Marcum LLP; Marcum Technology LLC; Marcum Search LLC; Marcum Financial Services LLC; Marcum Bernstein & Pinchuk LLP; MarcumBuchanan Associates LLC; and Marcum Cronus Partners LLC. For more information, visit www.marcumllp.com.

# # #

Targeted Medical Pharma Looks to China as the Next Medical Food Market

Company discusses distribution of medical foods with large Chinese pharmaceutical company

 Los Angeles, May 20, 2014 – Targeted Medical Pharma (OTCQB: TRGM), is currently discussing the logistics of importing the Company’s medical food products into China, with a large Chinese pharmaceutical company. No assurances can be made that a definitive agreement will be consummated between the two Companies at this time.

“Growth of international sales and distribution will contribute to the success of our 2014 fiscal initiatives,” said William Shell, M.D. Chief Executive Officer and Chief Science Officer at Targeted Medical Pharma. “Our discussions with a Chinese firm have been positive and informative, providing our company with a pathway to registration and distribution of our products in China.”

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.

# # # #

Targeted Medical Pharma Reports First Quarter 2014 Financial Results

Los Angeles, CA, May 21, 2014 — Targeted Medical Pharma, Inc. (OTCQB: TRGM), a biotechnology company that develops and markets medical foods for the treatment of chronic disease, including pain syndromes, peripheral neuropathy, hypertension, obesity, sleep and cognitive disorders announced financial results for its first quarter ended March 31, 2014. William Shell, M.D., Chief Executive Officer and Chief Science Officer of Targeted Medical Pharma stated, “During the remainder of 2014 we will continue to focus on the expansion of sales and marketing efforts to increase utilization, awareness and acceptance by physicians, patients and payers with an emphasis on markets that provide near-term revenue growth opportunities.  We believe this focus, combined with our cost containment efforts, will lead to an increase in revenue and overall profitability.

First quarter revenues represented an anomaly as the implementation of the Affordable Care Act (the “Act”) resulted in delays in premium payments to insurance companies and increases in patient deductibles.  We experienced a disruption in the payments of claims by insurance companies to the Company, which resulted in a reduction of revenue.  Since our revenue is largely based on cash collections and not shipped product, we experienced a temporary decline in our reported revenue.

As insurance premiums were paid into the Act, insurance payments increased to vendors such as the Company.  We’ve begun to experience an increase in cash collections to a more normal rate, which will be reflected in revenue increases in subsequent quarters. Anticipating the near-term and long-term impact of the Act, we have implemented a new emphasis on non-insurance based cash business that will result in more consistent and reliable revenue streams in the long term.  These new revenue streams include direct-to-consumer sales; expansion of cash based business to physicians and acceleration of our traditional private insurance business.  We anticipate continued acceleration of our annual growth rate of which we believe could increase between 30% and 60% in the year 2014 versus 2013.”

Financial Overview

Quarter-over-Quarter Comparison:

Financial results for the three months ended March 31, 2014 compared to the three months ended March 31, 2013

  • Total revenue of $1.8 million, compared to $2.8 million during the three months ended March 31, 2013.
  • Total gross profit of $1.2 million, compared to $1.9 million during the three months ended March 31, 2013.
  • Adjusted EBITDA of $(0.6) million, compared to ($0.1) million during the three months ended March 31, 2013.

Net loss for the three months ended March 31, 2014, was $0.97 million compared to a net loss of $0.27 million for the three months ended March 31, 2013.  Our revenues are, in part, dependent upon the timing of our cash receipts which places us at risk of significant fluctuations in our reported results.  During the first quarter of 2014 we experienced a decrease in collections from third party payers.  Consequently, the amount of product revenue that was recognized upon the receipt of cash decreased by $0.8 million during the quarter ended March 31, 2014 compared to the quarter ended March 31, 2013.  If we had not experienced a decrease in cash collections, then the impact of the cost containment efforts instituted during the fourth quarter of 2013 would have resulted in positive EBITDA during the first quarter of 2014.

During the three months ended March 31, 2014 and 2013, our net loss consisted of a significant amount of non-cash charges.  Due to the impact of these non-cash charges on our reported net loss, we place greater emphasis in Adjusted EBITDA.

A reconciliation of net loss to Adjusted EBITDA is reflected in the following table:

q1 14 table

A copy of Targeted Medical Pharma’s quarterly report on Form 10-Q for the three months ended March 31, 2014, filed with the Securities and Exchange Commission on May 20, 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.

                                                                                      #    #    #    #