GAAP Basic and Diluted Net Income of $0.35 and $0.34 Per Share
LEXINGTON, Mass.--(BUSINESS WIRE)-- Cubist Pharmaceuticals, Inc. (NASDAQ: CBST) today announced results for the first quarter ended March 31, 2010.
- 2010 Total Net Revenue Guidance Reconfirmed at $627 – $652 Million
- GAAP Basic and Diluted Net Income of $0.35 and $0.34 Per Share, Respectively, for 1Q10
- NON-GAAP Basic and Diluted Net Income of $0.61 and $0.53 Per Share, Respectively, for 1Q10
- Earnings Conference Call & Webcast Today (With Slides) at 5:00 pm ET
Cubist’s total net revenues for the first quarter of 2010 increased 19% to $144.1 million from $121.1 million in the first quarter of 2009. This increase was attributable primarily to Cubist’s net sales of CUBICIN® (daptomycin for injection) in the United States, which increased 20% to $135.3 million in the first quarter of 2010 from $112.4 million in the first quarter of 2009. Cubist’s net product revenues from international sales of CUBICIN for the first quarter of 2010 were $6.4 million, an increase of 188% over the first quarter of 2009. Additionally, $2.0 million of service revenue was recognized in the first quarter of 2010 relating to Cubist’s exclusive agreement with AstraZeneca to promote and provide other support in the United States for MERREM® I.V. (meropenem for injection). Cubist also confirmed that it expects 2010 total net revenue to be $627 – $652 million, which is unchanged from the guidance Cubist provided in January.
Net income for the first quarter ended March 31, 2010, on a GAAP basis, was $20.4 million, or $0.35 and $0.34 per basic and diluted share, respectively, as compared to $7.8 million, or $0.14 and $0.13 per basic and diluted share, respectively, for the first quarter ended March 31, 2009. The year ago quarter included a $20 million charge to research and development expense relating to the upfront payment made under Cubist’s agreement with Alnylam Pharmaceuticals, Inc.
Cubist's non-GAAP net income for the first quarter ended March 31, 2010, was $35.7 million, or $0.61 and $0.53 per basic and diluted share, respectively, which represents an increase of $8.5 million in non-GAAP net income compared to the same period in 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 March 31, 2010, Cubist had $506.1 million in cash, cash equivalents and investments. The total number of Cubist's common shares outstanding as of March 31, 2010, was 58,225,067.
Use of Non-GAAP Financial Measures
Non-GAAP net income and non-GAAP net income per share exclude non-operational activities. As a result, Cubist uses these measures to assess and analyze its operational results and trends and to make financial and operational decisions. Cubist also believes these non-GAAP financial measures are useful to investors because they provide greater transparency regarding Cubist's operating performance. These non-GAAP financial measures should not be considered an alternative to measurements required by GAAP, such as net income and net income per share, and should not be considered measures of Cubist's liquidity. In addition, these non-GAAP financial measures are unlikely to be comparable with non-GAAP information provided by other companies. A reconciliation between non-GAAP financial measures and GAAP financial measures is included in the tables accompanying this press release after the unaudited condensed consolidated financial statements.
******************CONFERENCE CALL & WEBCAST INFORMATION******************
WHEN: Thursday, April 15, 2010 at 5:00 p.m. ET
LIVE DOMESTIC & CANADA CALL-IN: 877-407-8289
LIVE INTERNATIONAL CALL-IN: 201-689-8341
24-HOUR REPLAY DOMESTIC & CANADA: 1-877-660-6853
24-HOUR REPLAY INTERNATIONAL: / 1-201-612-7415
REPLAY PASSCODES (BOTH REQUIRED FOR PLAYBACK):
ACCOUNT #: 351 CONFERENCE ID #: 347699
CALL WILL ALSO BE BROADCAST LIVE, LISTEN ONLY, VIA THE WEB AT:
www.cubist.com
Replay will be available for 30 days via the Internet at www.cubist.com
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About Cubist
Cubist Pharmaceuticals, Inc. is a biopharmaceutical company focused on the research, development, and commercialization of pharmaceutical products that address unmet medical needs in the acute care environment. In the U.S., Cubist markets CUBICIN® (daptomycin for injection), the first antibiotic in a new class of anti-infectives called lipopeptides. Cubist also promotes MERREM® I.V. (meropenem for injection) in the U.S. under an agreement with AstraZeneca. The Cubist clinical product pipeline currently consists of a Phase 2 program, added with Cubist’s acquisition of Calixa Therapeutics Inc. in December 2009, focused on the development of a novel cephalosporin to address certain serious infections caused by multi-drug resistant (MDR) Gram-negative organisms; a Phase 2 program for the treatment of CDAD (Clostridium difficile-associated diarrhea); and a Phase 1 program intended to address the unmet medical need for a treatment for serious infections caused by MDR Gram-negative pathogens. Cubist is also working on several pre-clinical programs, which would address areas of significant medical needs. These include an anti-infective program for the treatment of respiratory syncytial virus (RSV) in children, therapies to treat various serious bacterial infections, and agents to treat acute pain. Cubist is headquartered in Lexington, Mass. Additional information can be found at Cubist’s web site at www.cubist.com.
Cubist Safe Harbor Statement
This press release contains forward-looking statements regarding our guidance for our 2010 Total Net Revenues. There are many factors that could cause actual results to differ materially from those in these forward-looking statements. These factors include the following: the level of acceptance of CUBICIN by physicians, patients, third-party payors and the medical community; any changes in the current or anticipated market demand or medical need for CUBICIN; any unexpected adverse events related to CUBICIN, particularly as CUBICIN is used in the treatment of a growing number of patients around the world; the results of the patent infringement lawsuit that Cubist has filed against Teva Parenteral Medicines, Inc. and its affiliates in response to Teva's Abbreviated New Drug Application, or ANDA, with the U.S. Food and Drug Administration, or FDA, regarding CUBICIN and any litigation related thereto, and any other litigation that we file to defend and/or assert our patents; the effectiveness of our sales force and our sales force's ability to access targeted physicians; the continued growth of the market into which we sell CUBICIN; competition in the markets in which we and our partners market CUBICIN, including marketing approvals for new products that will be competitive with CUBICIN; the ability of our third party manufacturers, including our single source provider of API, to manufacture sufficient quantities of CUBICIN in accordance with Good Manufacturing Practices and other requirements of the regulatory approvals for CUBICIN and at an acceptable cost; the effect that the results of ongoing or future clinical trials of CUBICIN may have on its acceptance in the medical community; changes in government reimbursement for our or our competitors' products; our dependence upon collaborations with our partners and our partners' ability to execute on development and regulatory expectations; and a variety of risks common to our industry. Additional factors that could cause actual results to differ materially from those projected or suggested in any forward-looking statements are contained in Cubist's recent annual and quarterly reports with the Securities and Exchange Commission, including those factors discussed under the caption "Risk Factors" in such filings, which are incorporated in this press release by this reference. Forward-looking statements speak only as of the date of this release, and Cubist undertakes no obligation to update or revise these statements, except as may be required by law.
Cubist and CUBICIN are registered trademarks of Cubist Pharmaceuticals, Inc.
AstraZeneca and MERREM are trademarks of the AstraZeneca group of companies.
Tables Follow
| CUBIST PHARMACEUTICALS, INC. | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| UNAUDITED | ||||||
| (in thousands) | ||||||
| March 31, | December 31, | |||||
| 2010 | 2009 | |||||
| ASSETS | ||||||
| Cash, cash equivalents and investments | $ | 506,081 | $ | 496,163 | ||
| Accounts receivable, net | 58,942 | 57,827 | ||||
| Inventory | 25,432 | 25,497 | ||||
| Property and equipment, net | 69,558 | 68,382 | ||||
| Deferred tax assets, net | 20,998 | 33,387 | ||||
| In-process research and development | 194,000 | 194,000 | ||||
| Other assets | 116,827 | 102,419 | ||||
| Total assets | $ | 991,838 | $ | 977,675 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Accounts payable and accrued expenses | $ | 71,000 | $ | 104,131 | ||
| Deferred tax liabilities, net | 26,999 | 31,205 | ||||
| Deferred revenue | 21,033 | 20,891 | ||||
| Contingent consideration | 103,108 | 101,600 | ||||
| Debt and other long-term liabilities, net | 252,639 | 249,205 | ||||
| Total liabilities | 474,779 | 507,032 | ||||
| Total stockholders' equity | 517,059 | 470,643 | ||||
| Total liabilities and stockholders' equity | $ | 991,838 | $ | 977,675 | ||
| CUBIST PHARMACEUTICALS, INC. | |||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||
| UNAUDITED | |||||||||
| (in thousands, except share and per share data) | |||||||||
| Three months ended | |||||||||
| March 31, | |||||||||
| 2010 | 2009 | ||||||||
| Revenues: | |||||||||
| U.S. product revenues, net | $ | 135,267 | $ | 112,419 | |||||
| International product revenues | 6,362 | 2,206 | |||||||
| Service revenues | 2,000 | 6,050 | |||||||
| Other revenues | 435 | 435 | |||||||
| Total revenues, net | 144,064 | 121,110 | |||||||
| Costs and expenses: | |||||||||
| Cost of product revenues | 31,759 | 24,374 | |||||||
| Research and development | 38,882 | 50,542 | |||||||
| Contingent consideration | 1,508 | - | |||||||
| Sales and marketing | 19,855 | 19,480 | |||||||
| General and administrative | 14,728 | 10,927 | |||||||
| Total costs and expenses | 106,732 | 105,323 | |||||||
| Operating income | 37,332 | 15,787 | |||||||
| Other income (expense), net | (5,309 | ) | (4,032 | ) | |||||
| Income before income taxes | 32,023 | 11,755 | |||||||
| Provision for income taxes | 11,591 | 3,979 | |||||||
| Net income | $ | 20,432 | $ | 7,776 | |||||
| Basic net income per common share | $ | 0.35 | $ | 0.14 | |||||
| Diluted net income per common share | $ | 0.34 |
1 |
$ | 0.13 |
1 |
|||
| Shares used in calculating: | |||||||||
| Basic net income per common share | 58,217,628 | 57,530,885 | |||||||
| Diluted net income per common share | 68,928,596 | 58,458,860 | |||||||
|
1 Includes add back of interest expense, debt issuance costs and debt discount amortization on 2.25% notes to income, net of tax effect |
|||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME - NON-GAAP | |||||||||
| UNAUDITED | |||||||||
| (in thousands, except share and per share data) | |||||||||
| Three months ended | |||||||||
| March 31, | |||||||||
| 2010 | 2009 | ||||||||
| GAAP net income | $ | 20,432 | $ | 7,776 | |||||
| Non-cash stock-based compensation expense | 3,775 | 3,010 | |||||||
| Non-cash debt discount amortization | 3,473 | 3,195 | |||||||
| Contingent consideration | 1,508 | - | |||||||
| Upfront payments related to external collaborations | - | 20,000 | |||||||
| Non-cash tax expense | 9,991 | 3,335 | |||||||
| Income tax effect of Non-GAAP adjustments | (3,511 | ) | (10,157 | ) | |||||
| Non-GAAP proforma net income | $ | 35,668 | $ | 27,159 | |||||
| Non-GAAP basic net income per common share | $ | 0.61 | $ | 0.47 | |||||
| Non-GAAP diluted net income per common share | $ | 0.53 |
1 |
$ | 0.42 |
1 |
|||
| Shares used in calculating: | |||||||||
| Non-GAAP basic net income per common share | 58,217,628 | 57,530,885 | |||||||
| Non-GAAP diluted net income per common share | 68,928,596 | 68,208,290 | |||||||
| 1 Includes add back of interest expense and debt issuance costs on 2.25% notes to income, net of tax effect | |||||||||
CONTACT:
Cubist Pharmaceuticals, Inc.
Eileen C. McIntyre, 781-860-8533
Senior Director, Corporate Communications
[email protected]
or
Weber Shandwick
Tara Murphy, 617-520-7045
[email protected]
KEYWORDS: United States North America Massachusetts
INDUSTRY KEYWORDS: Health Biotechnology Clinical Trials Infectious Diseases Pharmaceutical Professional Services Finance Research Science
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