Cumberland Pharmaceuticals Founder, Chairman and CEO A. J. Kazimi (at left) told executives assembled for Owen GSM Professor Germain Boer's entrepreneurs breakfast this morning that one reason refused to withdraw his IPO from the SEC shelf was that his research showed that companies that did that never came back for a public offering. Instead, often because of cash woes, they sold, took private equity, or somesuch. Kazimi said Cumberland was doing fine on cash, and could afford to wait the reopening on the IPO window, and would need investment from the IPO to fuel its longer-term product-acquisitions strategy. The company made a record 20 amendments to its shelf filing, while waiting. Although the company attracted $85MM in gross proceeds and netted more than $75MM from its IPO Aug. 10, 2009, Kazimi said today that his priority is scaling-up his operations around Cumberland three current products, rather than immediately rushing to "drop in a fourth product." Once the IPO was imminent, Kazimi explained, he personally made about 100 presentations to investors in five days, including pitches he was obliged to make by phone during plane flights. Speakers during Boer's breakfasts are speaking off the record, unless they give permission to be quoted. Kazimi agreed VNC could write about his remarks. Kazimi's CPIX (NASDAQ) was trading at about $14 this morning.
Friday, January 15, 2010
Kazimi on Cumberland Pharma
Cumberland Pharmaceuticals Founder, Chairman and CEO A. J. Kazimi (at left) told executives assembled for Owen GSM Professor Germain Boer's entrepreneurs breakfast this morning that one reason refused to withdraw his IPO from the SEC shelf was that his research showed that companies that did that never came back for a public offering. Instead, often because of cash woes, they sold, took private equity, or somesuch. Kazimi said Cumberland was doing fine on cash, and could afford to wait the reopening on the IPO window, and would need investment from the IPO to fuel its longer-term product-acquisitions strategy. The company made a record 20 amendments to its shelf filing, while waiting. Although the company attracted $85MM in gross proceeds and netted more than $75MM from its IPO Aug. 10, 2009, Kazimi said today that his priority is scaling-up his operations around Cumberland three current products, rather than immediately rushing to "drop in a fourth product." Once the IPO was imminent, Kazimi explained, he personally made about 100 presentations to investors in five days, including pitches he was obliged to make by phone during plane flights. Speakers during Boer's breakfasts are speaking off the record, unless they give permission to be quoted. Kazimi agreed VNC could write about his remarks. Kazimi's CPIX (NASDAQ) was trading at about $14 this morning.
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