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Cubist Pharmaceuticals Q1 2008 Revenues up 48%; Net Income up 220%: Total Revenues $88.3 Million; Net Product Revenues $87.9 Million
4:03p ET April 17, 2008 (Business Wire)
Cubist Pharmaceuticals, Inc. (NASDAQ: CBST) today reported results for the first quarter ended March 31, 2008. Cubist's net revenues from CUBICIN(R) (daptomycin for injection) increased 48% from the prior year, from $59.4 million in the first quarter of 2007 to $87.9 million in the first quarter of 2008. U.S. net product revenue for the first quarter of 2008 was $86.1 million. Cubist's total revenues for the first quarter of 2008 increased 48% over the first quarter of 2007 from $59.5 million in the first quarter of 2007 to $88.3 million in the first quarter of 2008.

Net income for the first quarter ended March 31, 2008, on a GAAP basis was $17.9 million, or $0.32 and $0.26 per basic and diluted share, as compared to net income of $5.6 million, or $0.10 per basic and diluted share for the first quarter of 2007. First quarter 2008 GAAP net income includes $2.8 million, or $0.05 and $0.04 per basic and diluted share, respectively, in stock-based compensation expenses. First quarter 2008 GAAP net income also includes a one-time, non-cash, charge of $2.3 million related to the write off of assets disposed of to build new laboratory space at 65 Hayden Avenue.

Non-GAAP net income for the first quarter ended March 31, 2008, excluding the charges mentioned above, was $23.0 million, or $0.41 and $0.34 per basic and diluted share, respectively.

As of March 31, 2008, Cubist had $331.1 million in cash, cash equivalents and investments. The total number of common shares outstanding at March 31, 2008 was 56,241,087.

Use of Non-GAAP Financial Measures

Cubist adopted FAS 123(R) on January 1, 2006 using the modified prospective method, which resulted in the recognition of stock-based compensation expenses in the statement of operations from 2006 onward without adjusting the prior years. 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. 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. 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 first quarter 2008 Financial results, business activities and financial outlook. WHEN: Thursday, April 17, 2008 at 5:00 p.m. EDT LIVE DOMESTIC & CANADA CALL-IN: 877-407-0778 LIVE INTERNATIONAL CALL-IN: 201-689-8565 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 #: 274880 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. In the U.S., Cubist markets CUBICIN(R) (daptomycin for injection), the first antibiotic in a new class of anti-infectives called lipopeptides. The Cubist product pipeline includes pre-clinical programs that address unmet medical need 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.

CUBIST PHARMACEUTICALS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS UNAUDITED (in thousands) March 31, December 31, 2008 2007 --------- ------------ ASSETS Cash, cash equivalents and investments $331,144 $398,184 Accounts receivable, net 35,167 29,075 Inventory 17,622 18,733 Property and equipment, net 51,248 50,150 Other assets 34,696 38,373 --------- ------------ Total assets $469,877 $534,515 ========= ============ LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable and accrued expenses $ 39,284 $ 65,299 Deferred revenue 18,133 17,816 Debt, capital lease obligations and other long- term liabilities 303,450 352,698 --------- ------------ Total liabilities 360,867 435,813 --------- ------------ Total stockholders' equity 109,010 98,702 --------- ------------ Total liabilities and stockholders' equity $469,877 $534,515 ========= ============
CUBIST PHARMACEUTICALS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS UNAUDITED (in thousands, except share and per share data) Three months ended March 31, -------------------------- 2008 2007 ----------- ----------- Revenues: U.S. product revenues, net $ 86,058 $ 57,525 International product revenues 1,804 1,910 Other revenues 423 44 ----------- ----------- Total revenues, net $ 88,285 $ 59,479 Costs and expenses: Cost of product revenues 19,348 16,738 Research and development 22,364 15,870 Sales and marketing 19,983 14,994 General and administrative 11,433 7,720 ----------- ----------- Total costs and expenses 73,128 55,322 Operating income 15,157 4,157 ----------- ----------- Other income, net 3,327 1,610 ----------- ----------- Income before income taxes 18,484 5,767 Provision for income taxes 606 166 ----------- ----------- Net income $ 17,878 $ 5,601 =========== =========== Basic net income per common share $ 0.32 $ 0.10 Diluted net income per common share $ 0.26(a) $ 0.10 Shares used in calculating: Basic net income per share 56,220,709 55,118,813 Diluted net income per share 68,042,120 56,946,557
CUBIST PHARMACEUTICALS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - NON-GAAP UNAUDITED (in thousands, except share and per share data) Three months ended March 31, -------------------------- 2008 2007 ----------- ----------- GAAP net income $ 17,878 $ 5,601 Stock-based compensation expense under SFAS 123(R) 2,764 2,639 Write off of assets disposed of to build new lab space 2,323 - ----------- ----------- Non-GAAP proforma net income $ 22,965 $ 8,240 =========== =========== Non-GAAP basic net income per common share $ 0.41 $ 0.15 Non-GAAP diluted net income per common (a) share $ 0.34 $ 0.14 Shares used in calculating: Non-GAAP basic net income per common share 56,220,709 55,118,813 Non-GAAP diluted net income per common share 68,042,120 56,946,557

SOURCE: Cubist Pharmaceuticals, Inc.

Cubist Pharmaceuticals, Inc. Eileen C. McIntyre, 781-860-8533 Senior Director, Corporate Communications [e-mail] or Fleishman-Hillard, Inc. Jonathan R. Potter, 212-453-2406 [e-mail]