Cubist second quarter total net revenues increase 30% to $230.6M

Jul 20 2012

Cubist Pharmaceuticals, Inc. (NASDAQ: CBST) today announced results for the second quarter ended June 30, 2012. The Company will host a conference call and webcast today at 5:00 p.m. ET (details below).

“As we look to build on our tremendous momentum as a growing leader in the acute care/hospital environment, our Building Blocks of Growth will help us to sharpen our focus and measure our future success”

Financial Highlights for the Second Quarter of 2012 (unaudited)

• For the second consecutive quarter, total net revenues grew 30% over the same period in 2011. Q2 2012 total net revenues were $230.6 million, compared to $176.8 million in Q2 2011.
• U.S. CUBICIN® (daptomycin for injection) net product revenues increased 19% to $200.2 million from $168.6 million in Q2 2011; CUBICIN international revenues increased 47% to $11.4 million, compared to $7.7 million in Q2 2011.
• Non-GAAP diluted earnings per share (EPS) increased 28% to $0.68, compared to $0.53 in Q2 2011; GAAP diluted EPS was $0.58, compared to a loss of $0.34 per share in Q2 2011.
• Non-GAAP adjusted operating income increased 23% to $71.1 million, compared to $57.7 million in Q2 2011; GAAP operating income was $61.5 million, compared to an operating loss of $24.2 million in Q2 2011.

Michael Bonney, CEO of Cubist, said, "With another strong quarter, driven by revenue growth of 30% and a marked increase in bottom line growth, we are very pleased with the first half of 2012. We're off to a strong start as we drive toward our Building Blocks of Growth five-year goals, and we look forward to a promising second half of 2012 as we continue to focus on creating long-term shareholder value."

Cubist recorded a $5 million bonus from Optimer Pharmaceuticals, Inc. in the second quarter of 2012, for achieving the first year revenue target, bringing DIFICID® (fidaxomicin) service revenues for the quarter to $8.7 million. ENTEREG® (alvimopan), acquired through our acquisition of Adolor Corporation in December 2011, net product revenues were $9.7 million in Q2 2012.

As of June 30, 2012, Cubist had $854 million in cash, cash equivalents and investments. The total number of Cubist's common shares outstanding as of June 30, 2012 was 63,751,433.

Recent Company Highlights

• On July 12, 2012, Cubist announced the initiation of its pivotal Phase 3 studies evaluating the efficacy and safety of CB-315 in patients with Clostridium difficile-associated diarrhea, or CDAD, with enrollment of a patient in the first of two planned identical global trials.
• On July 2, 2012, Cubist announced the promotion of Robert J. Perez, former Executive Vice President and Chief Operating Officer (COO), to President and COO; the promotion of Michael Tomsicek, former Vice President of Corporate Finance, to Senior Vice President and Deputy Chief Financial Officer; and the appointment of Thomas Rollins, former Senior Vice President of Program Management and R&D Planning at Sunovian Pharmaceutical Inc., to Senior Vice President of Program and Portfolio Management.
• On June 11, 2012, Cubist announced a five-year strategic roadmap, Building Blocks of Growth, which focuses on driving top- and bottom-line growth, future pipeline developments, and cultural enhancements that will position Cubist to deliver long-term, sustainable growth.
• In May 2012, at two scientific meetings, Cubist presented the results from Phase 2 studies of CB-5945 in patients with chronic non-cancer pain and opioid-induced constipation (OIC). The studies each met the primary endpoint of change from baseline in the number of spontaneous bowel movements (SBMs). Phase 3 studies are planned to begin by the end of 2012.
• On April 17, 2012, Cubist announced that its Phase 4 study of ENTEREG in patients undergoing radical cystectomy met its primary endpoint of time to achieve recovery of both upper and lower GI function. Additionally, all secondary endpoints, including length of hospital stay, achieved statistical significance. Cubist expects to submit a supplemental New Drug Application (sNDA) with the U.S. Food and Drug Administration (FDA) by the end of 2012.

"As we look to build on our tremendous momentum as a growing leader in the acute care/hospital environment, our Building Blocks of Growth will help us to sharpen our focus and measure our future success," said Michael Bonney. "The next five years present many exciting opportunities for Cubist, and we have already taken important steps to capture them, including making key senior executive promotions and new hires that enhance our existing team. Together, we look forward to delivering important new medicines for patients and driving long-term value for our customers and shareholders."