Cubist third quarter total net revenues increase 13% to $162.1M

Oct 15 2010

Cubist Pharmaceuticals, Inc. (NASDAQ: CBST) today announced results for the third quarter ended September 30, 2010.

Third Quarter 2010 Highlights:

• GAAP Basic and Diluted Net Income of $0.53 and $0.50 per share, respectively, for 3Q10
• Non-GAAP Basic and Diluted Net Income of $0.83 and $0.72 per share, respectively, for 3Q10
• Raising operating income guidance range for full year to $185 - $195 million
• Tightening total revenue guidance range to $645 - $650 million
• Earnings' conference call & webcast today (with slides) at 5:00 p.m. ET

Cubist's total net revenues for the third quarter of 2010 increased 13% to $162.1 million from $143.5 million in the third quarter of 2009. This increase was attributable primarily to Cubist's net sales of CUBICIN® (daptomycin for injection) in the United States, which increased 12% to $154.5 million in the third quarter of 2010 from $137.7 million in the third quarter of 2009. Cubist's net product revenues from international sales of CUBICIN for the third quarter of 2010 were $6.0 million, an increase of 53% over the third quarter of 2009. In Q3 2010 there were no service revenues recorded as Cubist's exclusive agreement with AstraZeneca to promote and provide other support in the United States for MERREM® I.V. (meropenem for injection) ended in June.

Net income for the third quarter of 2010 on a GAAP basis was $31.2 million, or $0.53 and $0.50 per basic and diluted share, respectively, as compared to $25.4 million, or $0.44 and $0.42 per basic and diluted share, respectively, for the third quarter of 2009.

Cubist's non-GAAP net income for the third quarter of 2010 was $49.1 million, or $0.83 and $0.72 per basic and diluted share, respectively, which represents an increase of $5.9 million in non-GAAP net income compared to the third quarter of 2009. A reconciliation between GAAP and non-GAAP net income is provided in the Condensed Consolidated Statements of Income Non-GAAP table included with this release.

As of September 30, 2010, Cubist had $605.1 million in cash, cash equivalents and investments. The total number of Cubist's common shares outstanding as of September 30, 2010, was 59,145,736.

Clinical Pipeline Update

• CXA-201 -- A novel cephalosporin/tazobactam combination product (combination of CXA-101 and tazobactam) being developed for the treatment of infections due to drug-resistant Pseudomonas aeruginosa and other Gram-negative pathogens:
  • Positive Phase 2 complicated urinary tract infection data (for CXA-101 alone) presented at ICAAC in September
  • Enrollment continues in Phase 2 CXA-201 complicated intra-abdominal infection trial
  • Remain on track with clinical plan, which, assuming success, will allow for an NDA filing for 2 indications by YE 2013
• CB-183,315 -- A potent, oral, bactericidal lipopeptide being developed for the treatment of Clostridium difficile-associated diarrhea (CDAD):
  • Positive preclinical data presented at ICAAC in September
  • Phase 2 dose-ranging trial continues to enroll
  • Expect to have data to share in 2H 2011