Exhibit 99.1
Contacts:
| | |
Cubist Pharmaceuticals, Inc. | | Fleishman-Hillard, Inc. |
Eileen C. McIntyre | | Jonathan R. Potter |
Senior Director, Corporate Communications | | (212) 453-2406 |
(781) 860-8533 | | potterj@fleishman.com |
eileen.mcintyre@cubist.com | | |
CUBIST PHARMACEUTICALS REPORTS FIRST $100 MILLION REVENUE QUARTER;
Q2 2008 TOTAL REVENUES $101.8 MILLION;
TOTAL NET PRODUCT REVENUES $101.4 MILLION
GAAP Basic and Diluted Net Income of $0.03 Per Share, Reflecting One Time Expenses
Non-GAAP Basic and Diluted Net Income of $0.38 and $0.35 Per Share, Respectively
Earnings Conference Call & Webcast Today (With Slides) at 5:00 p.m. EDT
Lexington, MA, July 17, 2008 — Cubist Pharmaceuticals, Inc. (NASDAQ: CBST) today reported its first $100 million revenue quarter. For the second quarter ended June 30, 2008, Cubist’s net revenues from CUBICIN® (daptomycin for injection) increased 46% from the prior year, from $69.5 million in the second quarter of 2007 to $101.4 million in the second quarter of 2008. Total revenues for the second quarter of 2008 increased 46% over the second quarter of 2007 from $69.8 million in the second quarter of 2007 to $101.8 million in the second quarter of 2008.
Net income for the second quarter ended June 30, 2008 on a GAAP basis, reflecting one-time expenses, was $1.6 million, or $0.03 per basic and diluted share, as compared to $14.5 million, or $0.26 and $0.24 per basic and diluted share, respectively, for the second quarter of 2007. Second quarter 2008 GAAP net income includes $17.5 million of upfront and milestone expenses, or $0.30 and $0.25 per basic and diluted share net of tax, respectively, related to the in-licensing from Dyax Corporation of ecallantide for surgical indications. Second quarter 2008 GAAP net income also includes $3.0 million, or $0.05 and $0.04 per basic and diluted share net of tax, respectively, in stock-based compensation expenses.
Non-GAAP net income for the second quarter ended June 30, 2008, excluding the Dyax-related expenses and stock-based compensation expenses described above, was $21.5 million, or $0.38 and $0.35 per basic and diluted share, respectively.
As of June 30, 2008, Cubist had $358.3 million in cash, cash equivalents and investments. The total number of common shares outstanding at June 30, 2008 was 56,446,823.
Use of Non-GAAP Financial Measures
Cubist uses non-GAAP net income (loss) and non-GAAP net income (loss) per share data to improve its analysis of operational results and trends. Cubist’s management also uses these non-GAAP figures to make financial and operational decisions as these numbers exclude non-operational activities and because management believes these measures are useful to investors because they provide greater transparency regarding Cubist’s operating performance. These measures should not be considered an alternative to measurements required by GAAP, such as net income (loss) and net income (loss) per share, and should not be considered measures of our liquidity. In addition, these non-GAAP 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 are 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 second quarter 2008
financial results, business activities and financial outlook.
WHEN: Thursday, July 17, 2008 at 5:00 p.m. EDT
LIVE DOMESTIC & CANADA CALL-IN: 877-407-0782
LIVE INTERNATIONAL CALL-IN: 201-689-8567
24-HOUR REPLAY DOMESTIC & CANADA: 877-660-6853
24-HOUR REPLAY INTERNATIONAL: 201-612-7415
REPLAY PASSCODES (BOTH REQUIRED FOR PLAYBACK):
ACCOUNT #: 286 CONFERENCE ID #: 262759
CALL WILL ALSO BE BROADCAST LIVE, LISTEN ONLY, VIA THE WEB AT:
www.cubist.com
Replay will be available for 30 days 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 unmet medical needs in the acute care environment. Cubist developed and commercialized CUBICIN® (daptomycin for injection), a Gram-positive first-in-class lipopeptide antibiotic. In the U.S., Cubist also promotes MERREM® I.V. (meropenem for injection), Astra Zeneca’s established broad spectrum (carbapenem class) I.V. antibiotic. The Cubist product pipeline includes ecallantide, a recombinant human protein in Phase 2 clinical trials for the prevention of blood loss during cardiothoracic surgery, and pre-clinical programs that address unmet medical needs in Gram-positive infections, Gram-negative infections, CDAD (Clostridium difficile-associated diarrhea), and HCV (Hepatitis C infections). Cubist is headquartered in Lexington, MA. Additional information can be found at Cubist’s web site at www.cubist.com.
Cubist and CUBICIN are registered trademarks of Cubist Pharmaceuticals, Inc.
###
Tables Follow
CUBIST PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
(in thousands)
| | June 30, | | December 31, | |
| | 2008 | | 2007 | |
ASSETS | | | | | |
Cash, cash equivalents and investments | | $ | 358,329 | | $ | 398,184 | |
Accounts receivable, net | | 38,883 | | 29,075 | |
Inventory | | 16,999 | | 18,733 | |
Property and equipment, net | | 59,867 | | 50,150 | |
Other assets | | 37,256 | | 38,373 | |
| | | | | |
Total assets | | $ | 511,334 | | $ | 534,515 | |
| | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | |
Accounts payable and accrued expenses | | $ | 71,257 | | $ | 65,299 | |
Deferred revenue | | 18,348 | | 17,816 | |
Debt, capital lease obligations and other long-term liabilities | | 303,764 | | 352,698 | |
Total liabilities | | 393,369 | | 435,813 | |
| | | | | |
Total stockholders’ equity | | 117,965 | | 98,702 | |
| | | | | |
Total liabilities and stockholders’ equity | | $ | 511,334 | | $ | 534,515 | |
CUBIST PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
(in thousands, except share and per share data)
| | Three months ended | | Six months ended | |
| | June 30, | | June 30, | |
| | 2008 | | 2007 | | 2008 | | 2007 | |
Revenues: | | | | | | | | | |
U.S. product revenues, net | | $ | 99,366 | | $ | 68,294 | | $ | 185,424 | | $ | 125,819 | |
International product revenues | | 2,003 | | 1,231 | | 3,807 | | 3,141 | |
Other revenues | | 397 | | 239 | | 820 | | 283 | |
Total revenues, net | | $ | 101,766 | | $ | 69,764 | | $ | 190,051 | | $ | 129,243 | |
| | | | | | | | | |
Costs and expenses: | | | | | | | | | |
Cost of product revenues | | 22,050 | | 15,834 | | 42,050 | | 32,572 | |
Research and development | | 45,193 | | 17,145 | | 67,557 | | 33,015 | |
Sales and marketing | | 22,187 | | 15,993 | | 42,170 | | 30,987 | |
General and administrative | | 10,521 | | 7,787 | | 21,954 | | 15,507 | |
Total costs and expenses | | 99,951 | | 56,759 | | 173,731 | | 112,081 | |
| | | | | | | | | |
Operating income | | 1,815 | | 13,005 | | 16,320 | | 17,162 | |
| | | | | | | | | |
Other income (expense), net | | (23 | ) | 2,007 | | 3,304 | | 3,617 | |
| | | | | | | | | |
Income before income taxes | | 1,792 | | 15,012 | | 19,624 | | 20,779 | |
| | | | | | | | | |
Provision for income taxes | | 160 | | 522 | | 766 | | 688 | |
| | | | | | | | | |
Net income | | $ | 1,632 | | $ | 14,490 | | $ | 18,858 | | $ | 20,091 | |
| | | | | | | | | |
Basic net income per common share | | $ | 0.03 | | $ | 0.26 | | $ | 0.33 | | $ | 0.36 | |
Diluted net income per common share | | $ | 0.03 | | $ | 0.24 | (a) | $ | 0.31 | (b) | $ | 0.35 | |
| | | | | | | | | |
Shares used in calculating: | | | | | | | | | |
Basic net income per share | | 56,391,804 | | 55,406,882 | | 56,306,256 | | 55,263,940 | |
Diluted net income per share | | 57,743,860 | | 68,754,256 | | 67,767,704 | | 57,180,092 | |
(a) Includes add back of interest expense and debt issuance costs related to 2.25% notes to income, net of tax effect
(b) Includes add back of interest expense, debt issuance costs and gain on repurchase of 2.25% notes to income, net of tax effect
CUBIST PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - NON-GAAP
UNAUDITED
(in thousands, except share and per share data)
| | Three months ended | | Six months ended | |
| | June 30, | | June 30, | |
| | 2008 | | 2007 | | 2008 | | 2007 | |
| | | | | | | | | |
GAAP net income | | $ | 1,632 | | $ | 14,490 | | $ | 18,858 | | $ | 20,091 | |
| | | | | | | | | |
Ecallantide licensing fees | | 17,500 | | — | | 17,500 | | | |
| | | | | | | | | |
Stock-based compensation expense under SFAS 123(R) | | 3,004 | | 2,692 | | 5,768 | | 5,331 | |
| | | | | | | | | |
Write off of assets disposed of to build new lab space | | — | | — | | 2,323 | | — | |
| | | | | | | | | |
Income tax effect of Non-GAAP adjustments | | (574 | ) | (91 | ) | (717 | ) | (181 | ) |
| | | | | | | | | |
Non-GAAP proforma net income | | $ | 21,562 | | $ | 17,091 | | $ | 43,732 | | $ | 25,241 | |
| | | | | | | | | |
Non-GAAP basic net income per common share | | $ | 0.38 | | $ | 0.31 | | $ | 0.78 | | $ | 0.46 | |
Non-GAAP diluted net income per common share | | $ | 0.35 | (a) | $ | 0.28 | (a) | $ | 0.68 | (b) | $ | 0.43 | (a) |
| | | | | | | | | |
Shares used in calculating: | | | | | | | | | |
Non-GAAP basic net income per common share | | 56,391,804 | | 55,406,882 | | 56,306,256 | | 55,263,940 | |
Non-GAAP diluted net income per common share | | 67,493,290 | | 68,754,256 | | 67,767,704 | | 68,554,427 | |
(a) Includes add back of interest expense and debt issuance costs related to 2.25% notes to income, net of tax effect
(b) Includes add back of interest expense, debt issuance costs and gain on repurchase of 2.25% notes to income, net of tax effect
