Los Angeles, CA, November 18, 2014 — Targeted Medical Pharma, Inc. (OTCQB: TRGM) a drug discovery and development biotechnology company, today announced financial results for its third quarter ended September 30, 2014 and clinical trial updates.
The company reported significant improvement in both net loss and net loss before interest, taxes, depreciation and amortization, and stock based compensation (Adjusted EBITDA*) on a quarter-over-quarter basis.
In Addition, in Q3, the company reported major advances in the development of new treatments for both chronic low back pain and Posttraumatic Stress Disorder, publishing new data for the products Theramine, Sentra AM and Sentra PM in The American Journal of Therapeutics and The Journal of Central Nervous System Disease respectively.
William Shell, M.D., Chief Executive Officer and Chief Science Officer of Targeted Medical Pharma, commented, “The gains in net loss and EBITDA in Q3 reflect our steadfast commitment to cost containment and continued focus on developing profitable business verticals.” He continued, “We made a lot of progress in the third quarter of 2014 with our product development and clinical data programs. Two papers were published in peer reviewed journals further validating the efficacy of the medical foods Theramine, Senta AM and Sentra PM helping to position these products for wider adoption by clinicians and consumers.”
A copy of Targeted Medical Pharma’s quarterly report on Form 10-Q for the three months ended September 30, 2014, filed with the Securities and Exchange Commission on November 14, 2014, is accessible on the Company’s website at www.tmedpharma.com and at the SEC’s website at www.sec.gov.
Financial results for the three months ended September 30, 2014 compared to the three months ended September 30, 2013.
- Total revenue of $1.7 million, a 24% decrease from $2.2 million during the three months ended September 30, 2013.
- Total gross profit of $1.2 million, a 25% decrease from $1.6 million during the three months ended September 30, 2013.
- Adjusted EBITDA of ($0.3) million, a 73% improvement from $(1.1) million during the three months ended September 30, 2013.
Net loss for the three months ended September 30, 2014, was $1.0 million compared to a net loss of $1.7 million for the three months ended September 30, 2013. The Company’s operating expense for the third quarter of 2014 was $1.9 million, a 39% decrease from the third quarter of 2013.
About Targeted Medical Pharma, Inc.
Targeted Medical Pharma, Inc. is a Los Angeles-based biotechnology company that is committed to drug discovery and development. The company currently develops and distributes medications 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.