Targeted Medical Pharma to Present at Sachs Associated 14th Annual Biotech in Europe Forum for Global Partnering and Investment

Los Angeles, September 16, 2014Targeted Medical Pharma (OTCQB:TRGM), today announced that William Shell, M.D., Chairman, CSO and CEO  is scheduled to present the latest company information regarding the advances in therapeutic nutrition and medical foods technology, at the 14th Annual Biotech in Europe Forum at the Congress Center in Basel, Switzerland. The presentation is scheduled for September 30th, 2014 at 11:45 am in the Lima Room. Dr. Shell will also be a panelist in the discussion regarding advancements in Neuroscience at 3:30 pm.

Additional information about the conference may be found at www.sachsforum.com. Attendees who wish to meet with management one on one may contact our Investor Relations department investors@tmedpharma.com

About Targeted Medical Pharma, Inc.

Targeted Medical Pharma, Inc. (OTCQB: TRGM) is a publicly traded, Los Angeles-based biotechnology company that is committed to drug discovery and development. The company currently develops and distributes amino acid based medical foods, a rapidly growing sector of medication technology, for the treatment of chronic disease, including pain syndromes, peripheral neuropathy, hypertension, obesity, sleep and cognitive disorders using the patented system of Targeted Cellular Technology.

The company also develops a line of dietary supplements designed to support health and wellness.  TMP currently manufactures 10 proprietary amino acid based 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 is also developing nutrient-based systems for oral stimulation of progenitor stem cells that differentiate into neurons, red blood cells, pituitary hormones including IGF-I.

Follow the Company on twitter @tmedpharma

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Targeted Medical Pharma Reports Second Quarter 2014 Financial Results

Los Angeles, CA, August 14, 2014 – Targeted Medical Pharma, Inc. (OTCQB: TRGM), today announced financial results for its second quarter ended June 30, 2014.  The Company posted increased revenues, gross profit and an increase in net income before interest, taxes, depreciation and amortization, and stock based compensation (Adjusted EBITDA*) on a quarter-over-quarter basis.

Financial Overview

Quarter-over-Quarter Comparison:

Financial results for the three months ended June 30, 2014 compared to the three months ended June 30, 2013

  • Total revenue of $2.2 million, a 16% improvement from $1.9 million during the three months ended June 30, 2013.
  • Total gross profit of $1.7 million, a 45% improvement from $1.2 million during the three months ended June 30, 2013.
  • Adjusted EBITDA of $0.04 million, a 103% improvement from -$1.6 million during the three months ended June 30, 2013.

Net loss for the three months ended June 30, 2014, was $0.42 million compared to a net loss of $7.84 million for the three months ended June 30, 2013. During the three months ended June 30, 2013, the Company decided to fully reserve its net deferred income tax assets resulting in income tax expense of $5.9 million. Exclusive of income tax expense, loss before income taxes for the three months ended June 30, 2014 and 2013, was $0.36 million and $1.94 million, respectively. This significant improvement reflects management’s commitment to continued operational cost containment and execution of a multi-channel sales and marketing strategy. We believe that operational improvements will continue to drive overall profitability.

During the three months ended June 30, 2014 and 2013, the Company’s net loss consisted of a significant amount of non-cash charges.  Due to the impact of these non-cash charges on the Company’s reported net loss, the Company places greater emphasis in Adjusted EBITDA.

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

q2 2014 financial table

Management Comments 

“The improvements in revenue, profit and EBITDA in the second quarter of 2014 reflect our continued focus on streamlining operations and expanding the number of revenue generating verticals,” said William Shell, M.D., Chief Executive Officer and Chief Science Officer of Targeted Medical Pharma. “Developing a sustainable business model constructed of multiple revenue verticals will insulate the company from shifts in the healthcare industry, and provide a reliable source of revenue for the continued research and development of therapies for the treatment of Autism and Anemia.”

A copy of Targeted Medical Pharma’s quarterly report on Form 10-Q for the three months ended June 30, 2014, filed with the Securities and Exchange Commission on August 14, 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 is committed to drug discovery and development.  The company currently develops and distributes medicationsfor 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. Follow the Company on Twitter: @tmedpharma and on Facebook: www.facebook.com/TargetedMedicalPharma.

 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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Targeted Medical Pharma to Sponsor Clinical Trial Conducted by U.S. Army and Henry M. Jackson Foundation

Study to Examine the Use of Theramine for the Treatment of Acute or Sub-Acute Lower Back Pain due to Injury

Los Angeles, CA, July 28, 2014 — Targeted Medical Pharma, Inc. (OTCQB: TRGM), today announced the completion of an agreement to sponsor an investigator-initiated study with the United States Army and The Henry M. Jackson Foundation for the Advancement of Military Medicine Inc. (HJF). The study, which is slated to start enrolling patients in Q2 of 2014, will involve the Company’s medical food Theramine.

The placebo-controlled study will seek to enroll 128 patients with acute or sub-acute lower back pain caused by injury. The principal investigator is an employee of the U.S. government and is the Director of Research, Department of Anesthesiology at Womack Army Medical Center Fort Bragg NC. The study is projected to be completed within 18 months from the first patient enrollment. Upon completion, the Foundation and the Principal Investigator will have the first opportunity to publish the results of the study whether or not the study results are favorable.

“We are excited to work with the HJF and the United States Army to further establish the efficacy of Theramine for the treatment of low back pain,” said William Shell M.D., Chief Executive Officer and Chief Science Officer at Targeted Medical Pharma. “Theramine has previously been established in two double-blind, multi-center trials to be effective at improving chronic low back pain, and has been in clinical use for over a decade. Sponsoring this trial provides our Company with a unique opportunity to service the men and women of the United States Military, providing them a safe and non-addictive option for pain management.”

About The Henry M. Jackson Foundation for the Advancement of Military Medicine

The Henry M. Jackson Foundation for the Advancement of Military Medicine, Inc. is a global organization dedicated to advancing military medical research. The Foundation serves military, medical, academic and government clients by administering, managing and supporting preeminent scientific programs that benefit members of the armed forces and civilians alike.

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 Appoints Two New Independent Members to the Board of Directors

 Health Care Veteran Kerry Weems and Corporate Finance Expert Paul Pelosi, Jr. Join the Advisory Team

Los Angeles, CA, June 13, 2014 — Targeted Medical Pharma, Inc. (OTCQB: TRGM), today announced the addition of two independent members to the Company’s board of directors. The Company welcomes back health care specialist Kerry Weems to the board as an independent director and chairman of the Nominating and Governance Committee, as well as corporate finance expert Paul Pelosi, Jr. as an independent director.

A nationally respected expert in health policy and government finance, Mr. Weems has served with distinction in the field of health care, including nearly 28 years in the Federal government, as Acting Administrator of the Centers for Medicare and Medicaid Services (CMS). Mr. Weems is currently Chief Executive Officer of TwinMed, a national medical supply distributor in Los Angeles.

Mr. Paul Pelosi, Jr., has many years of experience in advising companies in the areas of finance, infrastructure, and sustainability.  Mr. Pelosi has background in business law, public policy, the public securities markets, and has worked with numerous emerging microcap companies to develop sound business protocols.  Mr. Pelosi has been a private investor and an independent adviser to emerging companies, including NASA Ames Research Center, Global Emerging Markets and AirPatrol Corporation.  Mr. Pelosi graduated from Georgetown Law Center, has been a member of the California State Bar since 1996, and Real Estate Broker since 2002.

Twitter: @tmedpharma

Facebook: https://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 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.

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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.

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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.

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Targeted Medical Pharma Completes Middle East Distribution Agreement

Creates new market opportunity for increased product sales

 Los Angeles, April 28,  2014 – Targeted Medical Pharma (OTCQB: TRGM),  announced the completion of an agreement between Analytical Testing Laboratories (ATL), a Lebanon based company that specializes in drug testing services and inborn errors of metabolism,  for the exclusive distribution of the company’s amino acid based products to physicians and pharmacies throughout the Middle East.

The Agreement provides ATL with a limited exclusive license for the marketing and sales of certain products in twenty countries in the region. The Agreement includes a licensing fee, an annual minimum product purchase order and certain performance benchmarks which include meeting product registration and regulatory approvals as well as sales volume in a given country.

“We are excited to introduce our products to the Middle East, and look forward to working with ATL to rapidly scale the growth of their distribution in the region,” said William Shell, M.D. Chief Executive Officer and Chief Science Officer at Targeted Medical Pharma. “Expanding international operations is a pivotal part of our growth strategy and will provide additional capital for increased domestic sales.”

About Analytical Testing Laboratories

Analytical Testing Laboratories (ATL) has been in operation since 1996. ATL is licensed by the Lebanese Ministry of Health and is directed by Dr. Amer Sakr. ATL is a specialized laboratory focusing on multidisciplinary analysis in the fields of Medical Diagnostics, Genetic Metabolic Diseases, Toxicology, Pharmaceutical Drug Testing Services, Food Chemistry & recently in Molecular Biology DNA & GMO Testing. ATL has been assigned by the Lebanese Internal Security Forces as the laboratory of choice for Forensic Toxicology & DNA Testing purposes. Also, the Ministry of Health has accredited ATL to do quality control testing on drugs, pharmaceutical & cosmetic products.

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 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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