Cumberland Pharmaceuticals Announces That Apotex Will Acquire The Company's Line Of Branded Pharmaceuticals For $100M In Cash

Cumberland Pharmaceuticals Inc. (NASDAQ:CPIX), a U.S. specialty pharmaceutical company, today announced it has entered into an agreement with an affiliate of Apotex ("Apotex"), the largest Canadian based pharmaceutical company to integrate their branded U.S. businesses. Under the terms of the agreement, Apotex will acquire Cumberland's line of branded pharmaceuticals for cash consideration of $100 million, and create a platform to deliver specialty medicines that improve the quality of patient care. The transaction is subject to authorization and approval by Cumberland's shareholders.

Cumberland will retain its pipeline product candidates which it intends to focus on developing following the closing of the transaction. It will also retain its majority ownership position in Cumberland Emerging Technologies Inc.

"Our business has two distinct profiles - with established commercial operations typical of a specialty pharmaceutical company and an exciting development pipeline often associated with a biotechnology firm" said A.J. Kazimi, CEO of Cumberland. "This transaction unlocks value for our shareholders and enables us to focus on the large market opportunities associated with our pipeline product candidates. We believe that the integration of these products with Apotex will create more critical mass to support patient care and provide enhanced career opportunities for our commercial team".

"This transaction will strengthen our ability to support patients in some of the most critical moments of their care journey," said Jeff Watson, President & CEO of Apotex. "As a Force for Health, we are committed to improving access to high-quality medicines and ensuring that patients, families, and clinicians have the treatments they rely on.  Integrating Cumberland's commercial business into the Apotex family will enhance our ability to deliver a meaningful health impact to patients across the United States."

In addition to its portfolio of FDA approved brands involved in the transaction with Apotex, Cumberland is developing ifetroban, a potent thromboxane antagonist through a series of programs designed to address unmet medical needs with significant market potential.

The Company has announced breakthrough results in a Phase II clinical study of ifetroban in patients with cardiomyopathy associated with Duchenne muscular dystrophy ("DMD"). This rare, fatal genetic neuromuscular disease results in deterioration of the skeletal, heart and lung muscles. Interactions with the FDA are underway regarding the study results and remaining requirements for approval. The program has received Orphan Drug, Rare Pediatric Disease and more recently Fast Track designations from the FDA.

Cumberland also has a Phase II clinical program evaluating its ifetroban product candidate in patients with Systemic Sclerosis ("SSc") or scleroderma, a debilitating autoimmune disorder characterized by diffuse fibrosis of the skin and internal organs. Enrollment in that study is completed and the next milestone will be announcement of the top-line study results.

The Company's third development program involves the treatment with ife