Cumberland's revenue grew 25% in 2008. It has another product coming to market soon that could redouble that growth. But 70 times earnings is a dizzying valuation all the same.
Cumberland's product portfolio makes the rich multiple all the more impressive. Its biggest current product, Acetadote, is an intravenous version of a drug treating Tylenol overdoses. The oral form of the drug is generically available. According to the prospectus, protection from competition comes not from patents, but from "trade secrets and proprietary know-how" as well as marketing exclusivity, granted by the U.S. Food and Drug Administration, that expires in 2011.
Will we see Cumberland's offerings pick up for the remainder of 2009 and early 2010?
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