Exhibit 99.1
Cubist Pharmaceuticals 3Q10 Total Net Revenues Up 13% to $162.1 Million
GAAP Basic and Diluted Net Income of $0.53 and $0.50 Per Share
Lexington, Mass., October 14, 2010 — Cubist Pharmaceuticals, Inc. (NASDAQ: CBST) today announced results for the third quarter ended September 30, 2010.
Third Quarter 2010 Highlights:
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.
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.
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.
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 class of anti-infectives called lipopeptides. The Cubist clinical product pipeline currently consists of a Phase 2 program focused on the development of a novel cephalosporin to address certain serious infections caused by multi-drug resistant (MDR) Gram-negative organisms; and a Phase 2 program for the treatment of CDAD (Clostridium difficile-associated diarrhea). Cubist is also working on several pre-clinical programs being developed to 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 and CUBICIN are registered trademarks of Cubist Pharmaceuticals, Inc.
Contacts:
Cubist Pharmaceuticals, Inc. | | Weber Shandwick |
Eileen C. McIntyre | | Tara Murphy |
Senior Director, Corporate Communications | | (617) 520-7045 |
(781) 860-8533 | | tara.murphy@webershandwick.com |
eileen.mcintyre@cubist.com | | |
Tables Follow
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CUBIST PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
(in thousands)
| | September 30, | | December 31, | |
| | 2010 | | 2009 | |
| | | | | |
ASSETS | | | | | |
Cash, cash equivalents and investments | | $ | 605,107 | | $ | 496,163 | |
Accounts receivable, net | | 61,304 | | 57,827 | |
Inventory | | 25,590 | | 25,497 | |
Property and equipment, net | | 75,202 | | 68,382 | |
Deferred tax assets, net | | 4,880 | | 33,387 | |
In-process research and development | | 194,000 | | 194,000 | |
Other assets | | 130,493 | | 102,419 | |
| | | | | |
Total assets | | $ | 1,096,576 | | $ | 977,675 | |
| | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | |
Accounts payable and accrued expenses | | $ | 82,629 | | $ | 104,131 | |
Deferred tax liabilities, net | | 41,125 | | 31,205 | |
Deferred revenue | | 23,846 | | 20,891 | |
Contingent consideration | | 85,389 | | 101,600 | |
Debt and other long-term liabilities, net | | 265,427 | | 249,205 | |
Total liabilities | | 498,416 | | 507,032 | |
| | | | | |
Total stockholders’ equity | | 598,160 | | 470,643 | |
| | | | | |
Total liabilities and stockholders’ equity | | $ | 1,096,576 | | $ | 977,675 | |
CUBIST PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
UNAUDITED
(in thousands, except share and per share data)
| | Three months ended | | Nine months ended | |
| | September 30, | | September 30, | |
| | 2010 | | 2009 | | 2010 | | 2009 | |
| | | | | | | | | |
Revenues: | | | | | | | | | |
U.S. product revenues, net | | $ | 154,486 | | $ | 137,660 | | $ | 444,744 | | $ | 376,180 | |
International product revenues | | 6,009 | | 3,928 | | 18,983 | | 8,877 | |
Service revenues | | — | | 1,500 | | 8,500 | | 9,050 | |
Other revenues | | 1,556 | | 446 | | 2,426 | | 1,316 | |
Total revenues, net | | 162,051 | | 143,534 | | 474,653 | | 395,423 | |
| | | | | | | | | |
Costs and expenses: | | | | | | | | | |
Cost of product revenues | | 37,000 | | 30,771 | | 105,178 | | 83,329 | |
Research and development | | 36,955 | | 35,527 | | 115,984 | | 118,440 | |
Contingent consideration | | 1,094 | | — | | 3,789 | | — | |
Sales and marketing | | 20,587 | | 18,883 | | 63,466 | | 60,020 | |
General and administrative | | 14,284 | | 12,857 | | 43,037 | | 36,446 | |
Total costs and expenses | | 109,920 | | 98,038 | | 331,454 | | 298,235 | |
| | | | | | | | | |
Operating income | | 52,131 | | 45,496 | | 143,199 | | 97,188 | |
| | | | | | | | | |
Other income (expense), net | | (678 | ) | (4,170 | ) | (11,379 | ) | (12,492 | ) |
| | | | | | | | | |
Income before income taxes | | 51,453 | | 41,326 | | 131,820 | | 84,696 | |
| | | | | | | | | |
Provision for income taxes | | 20,225 | | 15,947 | | 52,045 | | 27,765 | |
| | | | | | | | | |
Net income | | $ | 31,228 | | $ | 25,379 | | $ | 79,775 | | $ | 56,931 | |
| | | | | | | | | |
Basic net income per common share | | $ | 0.53 | | $ | 0.44 | | $ | 1.36 | | $ | 0.99 | |
Diluted net income per common share | | $ | 0.50 | (1) | $ | 0.42 | (1) | $ | 1.29 | (1) | $ | 0.98 | (1) |
| | | | | | | | | |
Shares used in calculating: | | | | | | | | | |
Basic net income per common share | | 59,047,880 | | 57,842,403 | | 58,621,263 | | 57,673,057 | |
Diluted net income per common share | | 69,780,060 | | 68,534,597 | | 69,312,849 | | 68,322,580 | |
(1) Includes add back of interest expense, debt issuance costs and debt discount on 2.25% notes to income, net of tax effect
