Cubist Pharmaceuticals Purchases 1% Reduction in Cidecin Royalty Rate from Lilly with Common Stock.Business Editors/Health/Medical Writers LEXINGTON, Mass.--(BUSINESS WIRE)--July 2, 2003 Cubist Pharmaceuticals, Inc. (Nasdaq: CBST CBST Center for Biophotonics Science and Technology CBST Congregation Beth Simcha Torah (NYC) CBST Complete Binary Search Tree ) today announced that it has purchased from Eli Lilly and Company Eli Lilly and Company (NYSE: LLY) is a global pharmaceutical company and one of the world's largest corporations. Eli Lilly's global headquarters is located in Indianapolis, Indiana, in the United States. (NYSE NYSE See: New York Stock Exchange : LLY) a reduction in the royalties payable to Lilly on net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of Cubist's investigational antibiotic Cidecin(R) (daptomycin for injection), should it gain regulatory approval. Cubist acquired worldwide development and commercialization rights to daptomycin from Lilly in 1997. The New Drug Application for CIDECIN is currently being reviewed by the U.S. Food & Drug Administration under priority review status. Under the terms of the transaction, Cubist will issue to Lilly $8.0 million in Cubist Common Stock, with registration rights. The price of the shares will be determined based on the average closing price of the stock over twenty consecutive trading days ending July 18, 2003. In exchange for the shares, Cubist's global royalty obligation to Lilly on CIDECIN sales will be reduced by one percentage point. Michael W. Bonney, President & Chief Executive Officer of Cubist commented on the transaction: "Over the past year, Cubist has made tremendous advancements in the development of CIDECIN and we remain committed to realizing the maximum value from its commercialization. We believe this transaction is a great opportunity for Cubist, as it reduces our future royalty obligations to Lilly." About Cubist Cubist Pharmaceuticals, Inc. is focused on becoming a global leader in the research, development and commercialization of novel pharmaceuticals to combat serious and life-threatening infections. Cubist has submitted a New Drug Application (NDA (Non Disclosure Agreement) An agreement signed between two parties that have to disclose confidential information to each other in order to do business. In general, the NDA states why the information is being divulged and stipulates that it cannot be used for any ) to the U.S. Food & Drug Administration (FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. ) for Cidecin(R) (daptomycin for injection) for the treatment of complicated skin and skin structure infections. The CIDECIN NDA is currently being reviewed by FDA under priority review status. Cubist's pipeline includes CAB-175, a next generation parenteral parenteral /pa·ren·ter·al/ (pah-ren´ter-al) not through the alimentary canal, but rather by injection through some other route, as subcutaneous, intramuscular, etc. par·en·ter·al adj. 1. cephalosporin cephalosporin (sĕf'əlōspôr`ĭn), any of a group of more than 20 antibiotics derived from species of fungi of the genus Cephalosporium and closely related chemically to penicillin. Cephalosporins, e.g. antibiotic in Phase 1 trials, and an oral version of ceftriaxone ceftriaxone /cef·tri·ax·one/ (cef?tri-ak´son) a semisynthetic, ß–resistant, third-generation cephalosporin effective against a wide range of gram-positive and gram-negative bacteria, used as the sodium salt. (OCTX), a broad-spectrum cephalosporin antibiotic in pre-clinical development Pre-clinical development is a stage in the development of a new drug that begins before clinical trials (testing in humans) can begin, and during which important safety and pharmacology data is collected. . Cubist is headquartered in Lexington, MA. Cubist Safeharbor Statement Statements contained herein that are not historical fact may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that are subject to a variety of risks and uncertainties. There are a number of important factors that could cause actual results to differ materially from those projected or suggested in any forward-looking statements made by the Company. These factors include, but are not limited to: (i) the Company's ability to successfully complete product research and development, including pre-clinical and clinical studies and commercialization; (ii) the Company's ability to obtain required governmental approvals; (iii) the Company's ability to attract and/or maintain manufacturing, sales, distribution and marketing partners; (iv) the Company's ability to develop and commercialize its products before its competitors; and (v) the Company's ability to finance its operations. Additional factors that would cause actual results to differ materially from those projected or suggested in any forward-looking statements are contained in the Company's filings with the Securities and Exchange Commission, including those factors discussed under the caption "Risk Factors" in the Company's recent SEC filings. Cidecin is a registered trademark of Cubist Pharmaceuticals, Inc. Additional information can be found at the Company's web site at www.cubist.com |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion