Health & Fitness
Wed, April 25, 2012
LEXINGTON, Mass.--([ BUSINESS WIRE ])--[ Cubist Pharmaceuticals, Inc. ] (NASDAQ: CBST) today announced results for the first quarter ended March 31, 2012. The Company will host a conference call and webcast today at 5:00 p.m. ET (details below).
Financial highlights for the first quarter of 2012 (unaudited):
- Total net revenues grew 30% to $211.7 million compared to $162.5 million in the same period in 2011.
- Total net product revenues for CUBICIN (daptomycin for injection) increased 22% to $197.4 million compared to $162.0 million in the first quarter of 2011. U.S. CUBICIN net product revenues increased 20% to $184.7 million from $153.7 million in the first quarter of 2011.
- GAAP net income grew 45% to $32.8 million, up from $22.6 million in the first quarter of 2011. GAAP net income was $0.52 and $0.45 per basic and diluted share, respectively, compared to $0.38 and $0.34 per basic and diluted share, respectively, in the first quarter of 2011.
- Non-GAAP net income for the first quarter increased 61% to $66.3 million from $41.2 million in the first quarter of 2011. Non-GAAP net income was $1.05 and $0.82 per basic and diluted share, respectively, compared to $0.69 and $0.54 per basic and diluted share, respectively, in the first quarter of 2011.
Michael Bonney, President and CEO of Cubist, said, aWith revenue growth of 30% and non-GAAP net income up 61%, we are very pleased with the start of 2012. This is a year of execution across the entire business, and we are making strong progress on operational, strategic and financial goals. We remain focused on leveraging our strong commercial model to drive the growth of CUBICIN, DIFICIDa" and ENTEREG (alvimopan) and on making disciplined investments in our pipeline to create long-term shareholder value.a
First quarter 2012 CUBICIN U.S. net product revenues were $184.7 million, up 20% from the first quarter of 2011. Cubistas product revenues from international sales of CUBICIN for the first quarter of 2012 were $12.7 million, an increase of 52% over revenues of $8.3 million in the first quarter of 2011. ENTEREG net product revenues, which Cubist now sells as a result of its acquisition of Adolor in December 2011, were $9.4 million for the first quarter of 2012.
As of March 31, 2012, Cubist had $861.7 million in cash, cash equivalents and investments. The total number of Cubistas common shares outstanding as of March 31, 2012 was 63,306,989.
Company Highlights for the first quarter of 2012
- Completed integration of Adolor acquisition
- Appointed to the Cubist Board of Directors Alison Lawton, Senior Vice President, General Manager Biosurgery, at Genzyme Corporation (now part of Sanofi);
- Appointed to the Cubist Board of Directors Jane E. Henney, M.D., Professor of Medicine at the University of Cincinnati College of Medicine; and
- Opened an expanded research facility at Company headquarters in Lexington, Massachusetts.
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 Cubistas 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 Cubistas 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***********************
Cubist will host a conference call and live audio webcast to discuss its first quarter 2012 financial results, business activities and financial outlook.
WHEN: Wednesday, April 18, 2012 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: 877-660-6853
24-HOUR REPLAY INTERNATIONAL: 201-612-7415
REPLAY PASSCODES (BOTH REQUIRED FOR PLAYBACK):
ACCOUNT #: 351 CONFERENCE ID #: 391065
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 ]
*********************************************************************************
About Cubist
Cubist Pharmaceuticals, Inc. is a biopharmaceutical company focused on the research, development, and commercialization of pharmaceutical products that address significant unmet medical needs in the acute care environment. Cubist is headquartered in Lexington, Mass. Additional information can be found at Cubistas web site at [ www.cubist.com ].
Cubist Safe Harbor Statement
This press release contains forward-looking statements. There are many factors that could cause actual results to differ materially from those in these forward-looking statements, including those factors discussed under the caption "Risk Factors" in our most recent annual and quarterly reports filed with the Securities and Exchange Commission. 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, CUBICIN and ENTEREG are registered trademarks of Cubist Pharmaceuticals, Inc.
DIFICID is a trademark of Optimer Pharmaceuticals, Inc.
Tables to follow
| CUBIST PHARMACEUTICALS, INC. | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| UNAUDITED | ||||||
| (in thousands) | ||||||
| March 31, | December 31, | |||||
| 2012 | 2011 | |||||
| ASSETS | ||||||
| Cash, cash equivalents and investments | $ | 861,681 | $ | 867,695 | ||
| Accounts receivable, net | 85,617 | 87,800 | ||||
| Inventory | 70,734 | 70,000 | ||||
| Property and equipment, net | 169,699 | 168,425 | ||||
| Deferred tax assets, net | 13,720 | 16,189 | ||||
| In-process research and development | 311,400 | 311,400 | ||||
| Other assets | 346,787 | 365,946 | ||||
| Total assets | $ | 1,859,638 | $ | 1,887,455 | ||
| LIABILITIES AND STOCKHOLDERSa EQUITY | ||||||
| Accounts payable and accrued expenses | $ | 114,696 | $ | 177,378 | ||
| Deferred tax liabilities, net | 140,570 | 143,177 | ||||
| Deferred revenue | 35,707 | 31,524 | ||||
| Contingent consideration | 221,063 | 248,234 | ||||
| Debt and other liabilities, net | 492,565 | 487,285 | ||||
| Total liabilities | 1,004,601 | 1,087,598 | ||||
| Total stockholders' equity | 855,037 | 799,857 | ||||
| Total liabilities and stockholders' equity | $ | 1,859,638 | $ | 1,887,455 | ||
| CUBIST PHARMACEUTICALS, INC. | ||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||
| UNAUDITED | ||||||||||||
| (in thousands, except share and per share data) | ||||||||||||
| Three months ended | ||||||||||||
| March 31, | ||||||||||||
| 2012 | 2011 | |||||||||||
| Revenues: | ||||||||||||
| U.S. CUBICIN product revenues, net | $ | 184,707 | $ | 153,716 | ||||||||
| U.S. ENTEREG product revenues, net | 9,442 | - | ||||||||||
| Total U.S. product revenues, net | 194,149 | 153,716 | ||||||||||
| International product revenues | 12,654 | 8,300 | ||||||||||
| Service revenues | 3,664 | - | ||||||||||
| Other revenues | 1,225 | 515 | ||||||||||
| Total revenues, net | 211,692 | 162,531 | ||||||||||
| Costs and expenses: | ||||||||||||
| Cost of product revenues | 53,952 | 36,577 | ||||||||||
| Research and development | 51,172 | 40,416 | ||||||||||
| Contingent consideration | 2,829 | 1,098 | ||||||||||
| Selling, general and administrative | 43,780 | 40,164 | ||||||||||
| Total costs and expenses | 151,733 | 118,255 | ||||||||||
| Operating income | 59,959 | 44,276 | ||||||||||
| Other income (expense), net | (8,513 | ) | (6,807 | ) | ||||||||
| Income before income taxes | 51,446 | 37,469 | ||||||||||
| Provision for income taxes | 18,652 | 14,884 | ||||||||||
| Net income | $ | 32,794 | $ | 22,585 | ||||||||
| Basic net income per common share | $ | 0.52 | $ | 0.38 | ||||||||
| Diluted net income per common share | $ | 0.45 |
| 1 | $ | 0.34 | 1 | |||||
| Shares used in calculating: | ||||||||||||
| Basic net income per common share | 63,001,379 | 59,362,021 | ||||||||||
| Diluted net income per common share | 84,386,002 | 79,533,776 | ||||||||||
| ||||||||||||
1 Includes add back of interest expense, debt issuance costs and debt discount amortization on 2.25% notes and 2.50% notes to income, net of tax effect
| CUBIST PHARMACEUTICALS, INC. | |||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME - NON-GAAP | |||||||||||
| UNAUDITED | |||||||||||
| (in thousands, except share and per share data) | |||||||||||
| Three months ended | |||||||||||
| March 31, | |||||||||||
| 2012 | 2011 | ||||||||||
| GAAP net income | $ | 32,794 | $ | 22,585 | |||||||
| Non-cash debt discount amortization | 4,827 | 4,486 | |||||||||
| ENTEREG intangible asset amortization | 4,589 | - | |||||||||
| ENTEREG inventory step-up | 534 | - | |||||||||
| Expenses related to the acquisition of Adolor | 3,589 | - | |||||||||
| Contingent consideration | 2,829 | 1,098 | |||||||||
| Non-cash tax expense | 17,148 | 13,038 | |||||||||
| Non-GAAP proforma net income | $ | 66,310 | $ | 41,207 | |||||||
| Non-GAAP basic net income per common share | $ | 1.05 | $ | 0.69 | |||||||
| Non-GAAP diluted net income per common share | $ | 0.82 | 1 |
| $ | 0.54 | 1 |
| |||
| Shares used in calculating: | |||||||||||
| Non-GAAP basic net income per common share | 63,001,379 | 59,362,021 | |||||||||
| Non-GAAP diluted net income per common share | 84,386,002 | 79,533,776 | |||||||||
Includes add back of interest expense and debt issuance costs on 2.25% notes and 2.50% notes to income, net of tax effect
