Targeted Medical Pharma Reports 2013 Third Quarter Financial Results

Year-Over-Year Revenue Increase of 41% and Gross Profit Increase of 84% for the nine months ended September 30, 2013 

Los Angeles, CA, November 15, 2013 — Targeted Medical Pharma, Inc. (OTCQB: TRGM), announced financial results for its third quarter ended September 30, 2013.  The Company posted increased revenues, gross profit and a reduction in net loss before interest, taxes, depreciation and amortization, stock based compensation, and non-recurring expenses (Adjusted EBITDA) on both a year-over-year and a quarterly basis. Financial Overview Year-over-Year Comparison: Improved financial results for the nine months ended September 30, 2013 compared to the nine months ended September 30, 2012

  • Total revenue of $6.9 million, an increase of 41% over the nine months ended September of 2012.
  • Total gross profit of $4.7 million, an increase of 84% over the nine months ended September of 2012.
  • Adjusted EBITDA* of $(2.4) million, an improvement of 36% over the nine months ended September of 2012.

Improved financial results for the quarter ended September 30, 2013 compared to the quarter ended September 30, 2012

  • Total revenue of $2.2 million, an increase of 6% over the third quarter of 2012.
  • Total gross profit of $1.6 million, an increase of 63% over the third quarter of 2012.
  • Adjusted EBITDA of $(0.7) million, an improvement of 36% over the third quarter of 2012.

Sequential Comparison: Improved financial results from the prior quarter ended June 30, 2013

  • Total revenue of $2.2 million, an increase of 14% over the second quarter of 2013.
  • Total gross profit of $1.6 million, an increase of 32% over the second quarter of 2013.
  • Adjusted EBITDA of $(0.7) million, an improvement of 55% over the second quarter of 2013.

Management Comments
“The third quarter of 2013 was a tremendous quarter for our Company.  As reflected in our sales, healthcare providers and their patients clearly recognize the benefits of our medical foods as an alternative to more dangerous drugs.  As a result, we are experiencing significant interest in our products and an increase in our customer base,” said William Shell, M.D., Chief Executive Officer and Chief Science Officer of Targeted Medical Pharma. “The third quarter was our seventh consecutive quarter of revenue growth, on a year-over-year basis.  At the same time we have significantly reduced our recurring operating costs while increasing our gross margins.  As we continue to expand our revenue, through both existing and new product offerings, I am confident in our ability to continue these positive trends and achieve profitability.”

Continued 2013 Strategic Initiatives:

  • Expansion of sales and marketing efforts to increase awareness and acceptance by physicians, patients and payers;
  • Conduct additional clinical trials for current and pipeline products including a new medical food indicated for the dietary management of Autism and Autism Spectrum Disorders;
  • Development of the Company’s dietary supplement divisionA copy of Targeted Medical Pharma’s quarterly report on Form 10-Q for the period ended September 30, 2013, filed with the Securities and Exchange Commission on November 13, 2013, is accessible on the Company’s website at www.tmedpharma.com and at the SEC’s website at www.sec.gov.

About Targeted Medical Pharma, Inc.
Targeted Medical Pharma, Inc. is a Los Angeles-based biotechnology company that develops  medical foods for the treatment of chronic disease, including pain syndromes, peripheral neuropathy, hypertension, obesity, sleep and cognitive disorders. The company also develops a line of dietary supplements designed to support health and wellness.  The company manufactures 10 proprietary medical foods, and recently launched its first dietary supplement, Clearwayz™.  The products are sold directly to physicians and pharmacies in the U.S. The company also is developing nutrient-based systems for oral stimulation of progenitor stem cells that differentiate into neurons, red blood cells, pituitary hormones including IGF-I.

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. 

Forward-looking statements also include any other passages that relate to expected future events or trends that can only be evaluated by events or trends that will occur in the future.  The forward-looking statements are based on the opinions and estimates of management at the time the statements were made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements.  These risks and uncertainties include, among others, the risk of unforeseen changes in customer budgets, unanticipated loss of customers or delays in anticipated orders, the potential failure to attract new customers due to the company’s inability to competitively market its products and services, the risk of fluctuating demand for the company’s product, the potential failure to maintain desired customer relationships, costs and risks related to development of technologies.  More information about factors that could cause actual results to differ materially from those predicted in Targeted Medical Pharma’s forward-looking statements is set out in its annual report on Form 10-K for the year ended December 31, 2012, filed with the Securities and Exchange Commission.  Readers are cautioned not to place undue reliance upon these forward-looking statements, which speak only as to the date of this release.  Except as required by law, Targeted Medical Pharma, undertakes no obligation to update any forward-looking or other statements in this press release, whether as a result of new information, future events or otherwise.

Supplemental schedule of net loss before interest, taxes, depreciation and amortization, stock based compensation, and non-recurring items Net loss before interest, taxes, depreciation and amortization, stock based compensation and non-recurring items refers to a financial measure that is more fully defined as net loss before net interest and other income, interest expense, income taxes, depreciation and amortization, stock based compensation, and non-recurring items related to the settlement of pending employee litigation (Adjusted EBITDA). Adjusted EBITDA is commonly used to analyze companies on the basis of leverage and liquidity. However, Adjusted EBITDA is not a measure determined under GAAP in the United States of America and may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA should not be construed as a substitute for net income or as a better measure of liquidity than cash flow from operating activities, which are determined in accordance with GAAP. Management believes that Adjusted EBITDA is a useful measure for analyzing operating results, and uses this non-GAAP financial measure to review past results and forecast future results. The following schedule reconciles Adjusted EBITDA to net loss on the company’s consolidated statement of operations, which the company believes is the most directly comparable GAAP measure.

Three Months Ended September 30, Nine Months Ended September 30,
2013 2012 2013 2012
NET LOSS $ (1,722,665) $ (1,241,443) $ (9,834,906) $ (5,042,183)
Depreciation of   property and equipment 37,733 40,995 107,758 139,467
Amortization of   intangibles 66,440 60,880 201,399 185,700
Income tax benefit 1,278 (581,996) 5,666,902 (1,992,142)
Interest, net 216,758 315,810 337,055 2,258,467
Stock based   compensation 302,508 273,949 708,220 662,981
Non-recurring expenses 377,000 377,000
Adjusted EBITDA* $ (720,948) $ (1,131,805) $ (2,436,572) $ (3,787,710)

*Adjusted EBITDA is a non-GAAP financial measure which management believes reflects the Company’s ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in the Company’s business, as they exclude certain income or other expenses that are not reflective of ongoing operating results. See the supplemental schedule of Adjusted EBITDA reconciliation to GAAP net income for the three and nine months ended September 30, 2013 and 2012.

####

Targeted Medical Pharma Introduces New Dietary Supplement Clearwayz™ for Healthy Sinus and Immune Function

 Supporting the Sinus and Immune Systems’ Anti-Inflammatory Processes   

Los Angeles, November 13, 2013 — Targeted Medical Pharma, Inc. (OTCQB: TRGM), today announced the launch of Clearwayz, a dietary supplement specially formulated to support healthy sinus and immune function. Clearwayz is the first product in a line of dietary supplements being manufactured by AminoLabs, a division of Targeted Medical Pharma.

Clearwayz is the first oral supplement to utilize “Targeted Cellular Technology,” a patented molecular system used in our medical foods, which stimulates the rapid cellular uptake and utilization of nutrients. The proprietary formulation of polyphenols, nutrients and amino acids in Clearwayz provides the body with targeted nutrition to support the natural anti-inflammatory processes in the sinuses, as well as support a healthy immune response. Clearwayz can be purchased online at www.clearwayz.com, or by calling (888) 394-3439.

“Each ingredient in Clearwayz has been extensively researched for both safety and efficacy, and have established health benefits,” said William Shell, M.D., CEO and Chief Scientific Officer of Targeted Medical Pharma, Inc. “The use of polyphenols and amino acids to address inflammation and pulmonary issues is well regarded in the medical community. Clearwayz combines these ingredients into a proprietary blend which leverages our Targeted Cellular Technology platform to provide sustained sinus, immune and pulmonary support.

About AminoLabs

Established in 2013, AminoLabs is a division of Targeted Medical Pharma Inc., which specializes in the research, development and commercialization of proprietary dietary supplements and novel delivery systems to increase uptake and improve ingredient efficacy.

About Targeted Medical Pharma, Inc.

Targeted Medical Pharma, Inc. 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.  The company also is developing nutrient-based systems for oral stimulation of progenitor stem cells that differentiate into neurons, red blood cells, pituitary hormones including IGF-I along with a line of proprietary dietary supplements.

Forward Looking Statement

This press release may contain forward-looking statements related to Targeted Medical Pharma’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.

#               #               #

Targeted Medical Pharma Reports Initial Results From a Clinical Observation of Medical Foods for Autistic Spectrum Disorder Symptoms

Addressing the Nutrient Deficiencies Associated with Autism Spectrum Disorders 

Los Angeles, CA, October 31, 2013 — Targeted Medical Pharma, Inc. (OTCQB: TRGM), today announced preliminary findings from an investigator initiated clinical observation of amino acid based medical foods to address specific nutrient deficiencies in children with autism spectrum disease (ASD) symptoms.

26 children ages seven to sixteen were treated for a time period ranging between 30 days and 1 year, who were diagnosed with ASD or suffering from related symptoms including explosive behavior, social isolation, and mood disorder. The investigator reported that children demonstrated significant improvement with regards to decreased disruptive outbursts, improved socialization, improved mood and reduction in drug dose.

100 percent of patients have responded positively with an average improvement in explosive outbursts at 83 percent compared to baseline, with patients also demonstrating significant improvements in anxiety and mood regulation.

“We are very excited and encouraged about the positive feedback from this clinical observation,” said William Shell, M.D., CEO and Chief Science Officer of Targeted Medical Pharma. “Autism affects the way patients metabolize certain nutrients and we believe that our medical food technology is a safe and effective way to increase amino acid and neurotransmitter levels in this population.”

Autism and Autism Spectrum Disorders affect one percent of the population of children in the U.S. ages three to seventeen, with an estimated prevalence of one out of eighty eight births in the U.S. being affected by the disease. “The current pharmacologic treatments available for this patient population do not address the specific nutrient deficiencies, and are associated with a host of negative side effects,” said David Silver, M.D., President and Chief Operating Officer at Targeted Medical Pharma. “The initial results from this observation show that the symptoms of Autism can potentially be improved by addressing the specific nutritional deficiencies of the disease.”

A double-blind randomized placebo controlled trial is planned to be initiated shortly. Click here to download the release.

About Targeted Medical Pharma, Inc.

Targeted Medical Pharma, Inc. 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. 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 also 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 is engaged in the development of a proprietary line of dietary supplements.

Forward Looking Statement

This press release may contain forward-looking statements related to Targeted Medical Pharma’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.

# # #

Targeted Medical Pharma to Present at 2013 Aegis Capital Healthcare Conference

Los Angeles, CA, September 24th, 2013 — Targeted Medical Pharma, Inc. (OTCQB: TRGM), today announced that the company’s CEO and Chief Science Officer William Shell, M.D. along with President and Chief Operating Officer, David Silver M.D., will be presenting at the Aegis Capital 2013 Healthcare Conference being held at The Encore at Wynn Hotel in Las Vegas, Nevada on Friday, September 27, 2013 at 11:30 a.m. in Room 1.

The conference will feature more than 45 healthcare companies from around the world and will feature presentations from industry-leading growth companies in the healthcare sector. Following corporate presentations, executives will have the opportunity to participate in question-and-answer sessions with fund managers, institutional and private investors, industry analysts, and Aegis Capital’s top-performing brokers

According to a recent research report by Falls Church, VA-based Technology Catalysts International, the global medical foods market is estimated at approximately $12 billion and growing. The report notes that consumer and scientific interest in the relationship between diet, health, and alternative medicines has created an increased demand for medical foods.

About Targeted Medical Pharma, Inc.

Targeted Medical Pharma, Inc. 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 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. 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 also 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 is engaged in the development of a proprietary line of dietary supplements.

Forward Looking Statement

This press release may contain forward-looking statements related to Targeted Medical Pharma’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.

# # #

Targeted Medical Pharma to Present at 2013 Rodman & Renshaw Annual Global Investment Conference

Los Angeles, CA, September 5th, 2013 — Targeted Medical Pharma, Inc. (OTCQB: TRGM), today announced that the company’s CEO and Chief Science Officer William Shell, M.D., will be presenting at the 2013 Rodman & Renshaw Annual Global Investor Conference being held at the Millennium Broadway Hotel, New York, on Monday, September 9, 2013 at 11:40 a.m. EST.

The conference will feature more than 200 public & private companies from around the world and is expected to present to an audience of over 1,500 attendees. The various tracks featured at this event include, Biotechnology/Healthcare, Technology, Natural Resources, and Growth.

According to a recent research report by Falls Church, VA-based Technology Catalysts International, the global medical foods market is estimated at approximately $12 billion and growing. The report notes that consumer and scientific interest in the relationship between diet, health, and alternative medicines has created an increased demand for medical foods.

About Targeted Medical Pharma, Inc.

Targeted Medical Pharma, Inc. 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 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. 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 also 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 is engaged in the development of a proprietary line of dietary supplements.

Forward Looking Statement

This press release may contain forward-looking statements related to Targeted Medical Pharma’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.

# # #

Targeted Medical Pharma Initiates Clinical Trial of Red Blood Cell Stimulating Formulation

Medical Food Designed to Address the Increased Nutritional Requirements of Anemia 

 

Los Angeles, CA, September 4, 2013 — Targeted Medical Pharma, Inc. (OTCQB: TRGM), today announced  the company has initiated a third open-label clinical trial of its oral amino acid-based erythropoietin stimulating system (ESS) to determine increased red blood cell production in subjects diagnosed with anemia of chronic disease.

The study consists of 30 patients randomized for treatment across multiple independent sites to measure the changes in blood values after the oral administration of the company’s ESS medical food.  Primary outcomes of the trial include measuring hemoglobin concentrations and hematocrit percentages, as well as calculating patients’ red blood cell counts, reticulocyte counts and IGF-1 (insulin-like growth factor) protein levels.  Subjects will be screened for enrollment based on medical history and diagnosis of anemia of chronic disease or anemia of inflammatory response.

“Earlier pilot studies of our oral ESS medical food showed a significant stimulation of progenitor stem cells, resulting in an increase in hemoglobin content in patients with chronic anemia,” said William Shell, M.D., CEO and Chief Science Officer of Targeted Medical Pharma, Inc. “Addressing specific nutrient deficiencies in this patient population with this targeted oral therapy may help promote the production of red blood cells and could potentially help the millions of people in the United States suffering from chronic and inflammatory diseases that affect erythrocyte production.”

Chronic anemia is a blood disorder that slows the production of red blood cells in the bone marrow. Various chronic infections, inflammatory diseases and other illnesses and medications can affect the body’s ability to produce red blood cells. Some of these chronic conditions include certain cancers, autoimmune diseases such as rheumatoid arthritis, as well as HIV/AIDS, hepatitis C, liver disease and heart failure.  Various symptoms of chronic anemia include fatigue and loss of energy, irregular heartbeat and shortness of breath, headaches, difficulty concentrating, dizziness and insomnia.

Targeted Medical Pharma recently announced results of an earlier pilot study that showed subjects diagnosed with mild to moderate anemia who were treated with the company’s ESS medical food increased their hemoglobin levels by an average of 11.39 percent.  The average baseline hemoglobin measurement was 10.08 and 11.21 after 45 days with a similar increase in reticulocyte count (p<0.01).

About Targeted Medical Pharma, Inc.

Targeted Medical Pharma, Inc. 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. 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 also 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 is engaged in the development of a proprietary line of dietary supplements.

Forward Looking Statement

This press release may contain forward-looking statements related to Targeted Medical Pharma’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.

# # #

Targeted Medical Pharma Develops New Medical Food for Autism Spectrum Disorders

New Product Addresses Impaired Absorption and Increased Nutritional Requirements of Autism

Los Angeles, CA, August 30, 2013 — Targeted Medical Pharma, Inc. (OTCQB: TRGM) today announced that the company will begin a clinical trial on a new medical food indicated for the dietary management of Autism and Autism Spectrum Disorders.

This open label trial will measure the changes in blood concentrations of specific amino acids, behavior, mood, and sleep patterns over a thirty day period following a twice daily oral administration of the company’s new medical food. Subjects will be screened for enrollment based on medical history and diagnosis of Autism or any Autism Spectrum Disorders.

“Autism and Autistic Spectrum have long been recognized to be associated with reduced absorption of amino acids and a decrease in several brain neurotransmitters.  With our targeted cellular technology platform, we believe that this product may be able to increase the concentration of the necessary amino acid precursors and brain neurotransmitters that are diminshed in patients with autism,” said David Silver, M.D., President and Chief Operating Officer at Targeted Medical Pharma, Inc. “Our company has established that treating an underlying nutritional deficiency of a disease with a medical food can greatly reduce symptoms and improve clinical outcomes.”

Autism and Autism Spectrum Disorders affect one percent of the population of children in the U.S. ages three to seventeen, with an estimated prevalence of one out of eighty eight births in the U.S. being affected by the disease. The current pharmacologic treatments available are ineffective at treating the disease and are often associated with adverse side effects.

About Targeted Cellular Technology

Targeted cellular technology is a patented five-step process that is the foundation for the company’s medical foods. This technology promotes the rapid cellular uptake, conversion and release of neurotransmitter precursors, prevents attenuation and increases the efficacy of milligram quantities of amino acids, nutrients and biogenic amines.    

About Targeted Medical Pharma, Inc.

Targeted Medical Pharma, Inc. 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. 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 also 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 is engaged in the development of a proprietary line of dietary supplements.

Forward Looking Statement

This press release may contain forward-looking statements related to Targeted Medical Pharma’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.

# # #

 

Targeted Medical Pharma Establishes Dietary Supplement Division

Innovative New Products Focus on Health and Wellness

Los Angeles, August 29, 2013 — Targeted Medical Pharma, Inc. (OTCQB: TRGM) (OTCBB: TRGM), a biotechnology company that develops and distributes prescription medical foods to physicians and pharmacies, today announced the launch of a new division  that will specialize in the manufacturing and distribution of a proprietary line of dietary supplements.

The products, currently in the research and development phase, include a nasal decongestant, sleep aid, an appetite suppressant, a formula for pain and a formula that supports healthy cognitive performance. The products utilize the company’s patented targeted cellular technology platform to increase the effectiveness of milligram amounts of neurotransmitter precursors and “swish and swallow” system that is designed to allow digestive enzymes in saliva to initiate and facilitate digestion.

The first product is scheduled to be launched on November 1, 2013, and will be an oral dietary supplement featuring a proprietary sinuhealth blend designed to support healthy sinus and immune function, and help relieve nasal congestion, sinus pressure and runny nose associated with allergies and colds.

“We are pleased to announce the development of an over-the-counter product line and introduce a new technology that enhances the digestion processes by allowing salivary enzymes to function,” said William Shell, M.D., CEO and Chief Scientific Officer of Targeted Medical Pharma, Inc. “Our company is committed to innovating healthcare processes and providing physicians, patients, and health conscious consumers with the most effective and safe therapeutic options for health and wellness.”

About Targeted Medical Pharma, Inc.

Targeted Medical Pharma, Inc. 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. 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 also is developing nutrient-based systems for oral stimulation of progenitor stem cells that differentiate into neurons, red blood cells, pituitary hormones including IGF-I.

Forward Looking Statement

This press release may contain forward-looking statements related to Targeted Medical Pharma’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.

#               #               #

Targeted Medical Pharma Selects William B. Horne as Chief Financial Officer

Los Angeles, August 23, 2013, Targeted Medical Pharma, Inc. (OTCQB: TRGM), a biotechnology company that develops and distributes prescription medical foods, convenience kits and generic pharmaceuticals to physicians and pharmacies, today announced the appointment of William B. Horne as the company’s Chief Financial Officer.  He will oversee all aspects of the company’s fiscal operations and financial reporting.

“I am very pleased to have William join our growing management team,” said William Shell, M.D., the company’s CEO and Chief Science Officer. “His leadership and financial experience in the public and private healthcare sectors is a tremendous asset for Targeted Medical Pharma as we continue to execute on our growth strategy, driven by the increasing demand for cost-effective therapeutic alternatives such as medical foods across the healthcare sector.”

Horne brings to Targeted Medical Pharma a combination of experience in both early stage and mature environments with a 20-year record of success at managing corporate financial operations for fast-growing private and public companies.  Horne previously held the position of CFO at various companies, including OptimisCorp, a privately held healthcare technology company, and Patient Safety Technologies, Inc. (OTCBB: PSTX), a publicly traded medical device company.  He also held supervisory positions at Price Waterhouse, LLP and received a Bachelor of Arts in Accounting from Seattle University where he graduated magna cum laude.

About Targeted Medical Pharma, Inc.

Targeted Medical Pharma, Inc. 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 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 diagnostic testing as well as 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.

#     #     #

 

Targeted Medical Pharma Reports 2013 Second Quarter Financial Results

— Year-Over-Year Revenue Increase of 67% and Gross Profit  Increase

of 97% for the first half of 2013–

LOS ANGELES—August 14, 2013–Targeted Medical Pharma, Inc. (OTCQB:TRGM), a biotechnology company that develops and distributes prescription medical foods, convenience kits and generic pharmaceuticals to physicians and pharmacies, today announced financial results for its second quarter ended June 30, 2013. The Company continued to post increasing revenue for the second quarter and first half of 2013 compared to the second quarter and first half of 2012.

“I am thrilled to report the company’s strongest first half period as we continue to execute on our growth strategy and remain focused on increasing formulary coverage for our high value medications,” commented William Shell, M.D., Chief Executive Officer and Chief Science Officer of Targeted Medical Pharma. “The expansion and application of current initiatives, and our ability to enter new markets, coupled with an improvement in collections has resulted in increased revenue for all of our business lines. These factors contributed to our sixth consecutive quarter of revenue growth when analyzed on a year-to-year basis. I am optimistic about our growth opportunity and the team we have in place as we continue to strengthen our product pipeline and expand our sales and marketing efforts. Additionally, we continue to contain our operating expenses relative to revenue as we move toward overall profitability while we further increase our market share and enter new markets.”

Financial Overview:

Total revenue for the second quarter ended June 30, 2013 increased 32% to $1,917,388 compared to $1,448,226 in 2012. In addition, total gross profit for the quarter increased 43% to $1,181,918 in 2013 compared to $826,966 in 2012. This increase reflected a change in customer mix.

For the six months ending June 30, 2013 total revenue increased 67% to $4,728,519 compared to $2,823,411 in first half of 2012. Furthermore, total gross profit for the quarter increased 97% to $3,094,375 in 2013 compared to $1,567,416 in 2012. The loss from operations for the six months ended June 30, 2013 decreased 29% to $2,326,320 compared to the loss from operations of $3,268,229 in 2012.

“The clear implementation and precise execution of our strategy continues to exemplify itself with solid revenue and profit margin growth from operations,” said David Silver, M.D., President and Chief Operating Officer of Targeted Medical Pharma. “Along with our cost containment initiatives and tight expense control we have established a good cash flow trajectory for the Company. With clear momentum continuing to build we are expanding our sales forces to leverage unique opportunities in the marketplace and improve profitability. With further brand recognition in the medical community we are seeing increased demand from patients seeking our prescription medical foods as doctors and patients recognize the substantial benefits our products offer. As we move forward with continued development of new products, we remain focused on increasing the growth reported for the second quarter.”

First Half Highlights:

  • David Silver, M.D. promoted to President and Chief Operating Officer
  • S-1 Registration Statement declared effective by SEC
  • Expansion of private insurance market business
  • Expansion of California Worker’s Compensation market business
  • Initiation of agreements with Cambridge Medical Funding Group

Continued 2013 Strategic Initiatives:

  • Expansion of sales and marketing efforts to increase awareness and acceptance by both physicians and patients
  • Conduct additional clinical trials for current and pipeline products including Theramine®, new formulas for red blood cell production and nasal decongestion
  • Continue development of new stem cell products for neuropathy, chronic anemia, and diabetes

Detailed financial data information is available on Targeted Medical Pharma’s annual report (Form 10-Q), which is accessible on the Company’s website at www.tmedpharma.com and on the SEC’s website at sec.gov/edgar.shtml.

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 United States 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.

Theramine® is a trademark of Targeted Medical Pharma Inc.

# # #