Cary pharmaceutical company Cornerstone Therapeutics said this morning that it expects revenue this year to exceed $112 million, up from anticipated revenue of $104 million or more this year.
The revenue growth will be driven by the company's two newest drugs, acquired last year, which will more than offset declining revenue from some of its older products, CEO Craig Collard said during a conference call.
Without those acquisitions, revenue would be declining this year, David Price, the company's chief financial officer, said in an interview. Cornerstone's oldest products face competition from cheaper generics that are cutting into sales.
"We have transitioned the business," Collard said in an interview.
Ladenburg Thalmann analyst Matthew Kaplan reiterated his "buy" rating for Cornerstone in the wake of the company's guidance, even though he lowered his 2010 revenue and net income projections.
"We continue to be impressed with the company's transformation from a small, private company to a larger, pulic company with multiple marketing products and internal pipeline candidates with strong revenue potential," Kaplan wrote.
Cornerstone hasn't yet reported its 2009 financials. The company forecast in November that revenue for the year would exceed $104 million.
Collard also said profit margins this year would be squeezed by additional sales and marketing expenditures and rising research-and-development costs. The company projects income from operations, after excluding stock compensation and amortization of acquisitions, will be $16.4 million this year, versus a projected $26.1 million in 2009.
Collard reiterated that the company will continue its years-long strategy of growth through acquisitions. With nearly $20 million in cash at the end of 2009 and positive cash flow the company is "better positioned than we have ever been to take advantage of opportunities out there," he said.
Cornerstone acquired the U.S. rights to Curosurf, used to treat a lung ailment that affects premature infants, and the antibiotic Factive in September.
"Both of these products have enjoyed exceptional growth in the latter part of 2009, due in large part to the efforts of our talented, energized sales force," said Collard.
The company has about 120 salespersons and sales managers, about double the number of a year ago. The company has a total of 164 employees.
Cornerstone shares were trading at $5.89, up 15 cents, at mid-morning. That's a little less than half of its 52-week high of $11.54, but it's also more than double it low of $2.10 last January.
David Ranii has been a business reporter at The News & Observer since 1993. Over the years he has covered information technology, banking, insurance, the pharmaceutical and biotechnology industries, media businesses and real estate. Contact him at 919-829-4877 or 
