Earnings wrap: Cumberland, First Acceptance

Drug maker swings to loss, insurer to profit

Cumberland Pharmaceuticals posted a second-quarter net loss of almost $650,000 versus a profit of $1.7 million a year earlier. Revenues for the drug developer fell to $7.1 million from $12.4 million.

Company officials said they recently completed a clinical pediatric study evaluating its Caldolor pain and fever treatment. The study showed the drug to effectively lower temperatures without any safety concerns. The company also signed Caldolor distribution deals covering Spain, Portugal, Argentina, Chile, Brazil, Ecuador, Peru, Uruguay, Singapore, Thailand, Vietnam, Cambodia, Laos, Brunei and the Philippines. Execs also added Hong Kong and Macau to an existing commercialization agreement with Harbin Gloria Pharmaceuticals that covers Caldolor and their Acetadote acetaminophen overdose treatment in China.

"We are fortunate to have a strong balance sheet through this transition period as we manage Acetadote's life cycle and work to add new products to our portfolio," said CEO A.J. Kazimi.

Cumberland shares (Ticker: CPIX) closed Tuesday trading at $5.58, down 2.5 percent. They're up more than 30 percent year to date.

Nonstandard auto insurer First Acceptance earned $2.1 million during the second quarter, reversing a year-ago loss twice that big. Revenues at the Green Hills-based company climbed 8 percent to $62.5 million.

First Acceptance's loss ratio improved noticeably from the spring of 2012 and operating expenses also fell by more than $2 million, helping push the company's combined ratio to 95.6 percent versus 109.1 percent in the prior year. (A number below 100 percent means an insurer is making money on its underwriting operations.) Gross premiums earned in Florida, Texas and Alabama, the company's second-, third- and fourth-more important states, rose 15 percent from a year ago to $19.8 million. In No. 1 Georgia, they were flat.

Shares of First Acceptance (Ticker: FAC) climbed about 3 percent Tuesday to close at $1.79. So far in 2013, they've risen more than 40 percent.