LOS ANGELES--(BUSINESS WIRE)--
Targeted Medical Pharma, Inc. (TRGM), a biotechnology company that develops and distributes prescription medical foods, convenience kits and generic pharmaceuticals to physicians and pharmacies, today filed its 10-K and announced the Company’s 2012 financial results.
“We are pleased to report that the second half of 2012 has come back strong and clearly reflects the traction we are seeing as we continue to gain momentum,” said Chief Executive and Chief Scientific Officer William Shell, M.D. “Revenue decreased in the first half of 2012 primarily due to concerns among physicians regarding the changes in legislation that could have impacted payments to physicians who dispense pharmaceuticals. Fortunately, the final bill did not impact the sale of medical foods or medical food convenience kits. When physicians understood this in the second half of 2012, the Company saw an acceleration of growth.”
Dr. Shell continued, “A second bill passed accelerating payment of old workers compensation claims. As our Company recognized revenue for workers compensation claims only upon collection, this benefits our Company twofold – both through improved cash flow and increased revenue. In July, the acceleration of both dispenses and collections of workers compensation claims were seen due to the legislation that ultimately passed. Another consequence of this legislation has been the near elimination of the compounded pain medication marketplace. The impact on the compounded medication marketplace, which is a competitor for medical foods in some cases, has also positively increased medical food dispensing and revenue, particularly the Company’s product TheramineTM. The Company continues to show a narrowing of its net operating loss and improvement of its EBIDTA based on the preliminary unaudited analysis of its 2013 first quarter performance.”
As of December 31, 2012 the Company had a $34.4 million off balance sheet asset due to unrecorded accounts receivable for delivered products. This unrecognized off balance sheet asset has the potential to be recorded as revenue in the future as the Company’s CCPI subsidiary collects receivables on behalf of the Company’s Physician Managed business model and Hybrid business model customers’ claims.
Dr. Shell, M.D. continued, “Our strategic focus over the past year has been to expand distribution channels and enhance reimbursement mix, increase cash collections, and further develop our pipeline of proprietary prescription-only medical foods. I am pleased to report that we have made solid progress against each of these initiatives, as the Company transitions from development stage into a growing business with excellent long-term potential.
“On the corporate front, we welcomed Kerry Weems to our board of directors. Mr. Weems is a nationally respected expert in health policy and government finance, who most recently was Acting Administrator of the Centers for Medicare and Medicaid Services (CMS) and Vice-Chairman of the American Health Information Community,” said Dr. Shell. “We also announced the appointment of Fred McCall-Perez, Ph.D. as our new director of medical affairs.”
Key 2012 and Recent Achievements
- On March 4, 2013 the Company unveiled new results from an open label study of its oral amino acid-based erythrocyte stimulating system (ESS) for the treatment of chronic anemia. The Company’s ESS system is designed to stimulate progenitor stem cells in the bone marrow.
- Awarded a patent on February 5, 2013 from the United States Patent and Trademark Office relating to a system and method for electronically submitting medication claims by point-of-care physicians. This is the seventh patent issued to the Company.
- In December of 2012, five of the Company’s core prescription-only medical foods were added to the U.S. Department of Veterans Affairs Federal Supply Schedule.
- Entered into an agreement with Cambridge Medical Funding Group, allowing physicians to assign California Workers’ Compensation receivables to Cambridge, providing revenue to the Company and physicians within seven to ten days of assignment for all products dispensed and billed for participating doctors.
- Reported data from an open-label pilot study indicating that Target Medical Pharma’s new amino acid-based oral product Percura™ reduced symptoms of pain and numbness related to peripheral neuropathy. This product is designed to orally stimulate progenitor neuronal stem cells, promoting their growth.
- Reported data indicating that Targeted Medical Pharma’s new amino acid oral formulation stimulated mature red blood cell and reticulocyte development. The study group included patients with chronic anemia. This product is designed to orally stimulate genesis of bone marrow progenitor stem cells. The company submitted four new patent applications related to the oral stimulation of progenitor stem cells.
- Confirmed a relationship between autonomic nervous system dysfunction and Gulf War Illness. This is the first study to establish a medical basis for symptoms of Gulf War Illness in a large, representative sample of veterans using validated medical tests.
Published Scientific Papers
- Analyzing pharmacoeconomics of Targeted Medical Pharma’s drug, Theramine™, versus non-steroidal anti-inflammatory drugs, showing a significant cost saving for patients taking Theramine compared to NSAIDs when accounting for the cost of the side effects of NSAIDs.
- Demonstrating that Sentra PM™ improved sleep latency and improved nighttime parasympathetic nervous system activity as a standalone medication or used in conjunction with a low dose of Trazadone, based on results from a clinical trial of the Company’s proprietary medical food product, Sentra PM™.
Accepted to Present Clinical Posters
- Accepted to present “Theramine versus ibuprofen for the safe and effective management of chronic low back pain and inflammation,” at PAINWeek 2012, held in Las Vegas, Nevada, and at the 118th Annual Meeting of AMSUS in Phoenix 2012.
2013 Corporate Objectives
The Company provided the following key strategic goals for 2013:
- Expanding its presence in the Workers’ Compensation marketplace, beginning with California and then nationally;
- Further increasing penetration in the private insurance market, as well as into Medicare and Medicaid populations; and accelerating its sales and marketing efforts.
- Continue developing its product pipeline. The Company’s treatments for neuropathy, chronic anemia, asthma, nasal congestion and diabetes are currently undergoing clinical studies.
“We are dedicated to bringing our prescription medications to patients who have long sought alternatives to more dangerous prescription drugs,” said David S. Silver, M.D., Targeted Medical Pharma’s President and Chief Operating Officer. “Increasing recognition of medical foods as a class within the U.S. Food & Drug Administration, along with heightened awareness among the medical community and patients, positions us for commercial success. Ensuring broad patient access and building our brand presence represent key objectives, as we move forward in the current year.”
About Targeted Medical Pharma, Inc.
Targeted Medical Pharma is a Los Angeles-based biotechnology company that develops prescription medical foods for the treatment of chronic disease, including pain syndromes, peripheral neuropathy, hypertension, obesity, sleep and cognitive disorders. The company manufactures 10 proprietary prescription-only medical foods, as well as 48 convenience packed kits, which pair a medical food and branded or generic pharmaceutical. These prescription medical foods and therapeutic systems are sold to physicians and pharmacies in the U.S. and the Middle East through the company’s subsidiary, Physician Therapeutics. These proprietary medications represent a novel approach to the management of certain disease states, focusing on safety and efficacy without the deleterious side effects of traditional, high dose prescription drugs. The company is developing nutrient-based systems for oral stimulation of progenitor stem cells that differentiate into neurons, red blood cells, pituitary hormones including IGF-I. Targeted Medical Pharma also provides a billing and collection services on behalf of dispensing physicians.
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. 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 disclaim 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.
ProActive Capital Group
Jeff Ramson, Founder & CEO