* Cumberland Pharma price IPO $17/share, below estimate
* Cumberland to start trading Tuesday on Nasdaq
By Phil Wahba
NEW YORK, Aug 10 Cumberland Pharmaceuticals Inc
(CPIX.O) priced its initial public offering below the estimate
range on Monday, but broke a nearly two-year drought for IPOs
in the pharmaceutical sector.
Cumberland priced its shares at $17 apiece, raising $85
million in the first IPO by a pharmaceutical company since ARYx
Therapeutics Inc ARYX.O went public in November 2007,
according to Thomson Reuters data.
Nashville, Tennessee-based Cumberland, which specializes in
hospital acute care and gastroenterology, had expected shares
to price between $19 and $21 each, according to a recent filing
with the U.S. Securities and Exchange Commission.
In June, Cumberland received FDA approval for its Caldolor
pain and fever treatment.
It also markets and sells Acetadote, an injection that
treats poisoning from acetaminophen, the active ingredient in
many pain relievers, and Kristalose, a laxative.
Net of underwriting fees, the IPO will yield Cumberland
about $75 million, which Cumberland said in a recent filing it
would use to fund potential acquisitions and the commercial
launch of Caldolor.
Sales for the quarter ended on March 31, 2009 were $9.4
million, up 13.2 percent from a year earlier, with a profit of
The deal's underwriters, led by UBS Investment Bank
UBSN.VX, Jefferies & Co JEF.N and Wells Fargo Securities
(WFC.N), have the option to buy up to 750,000 additional
Cumberland is set to begin trading on Tuesday on Nasdaq
under the symbol "CPIX."
(Reporting by Phil Wahba; editing by Andre Grenon)