Cubist Pharmaceuticals Reports First-Quarter 2004 Results.Business Editors/Health/Medical Writers BIOWIRE2K LEXINGTON Lexington. 1 City (1990 pop. 225,366), seat of Fayette co., N central Ky., in the heart of the bluegrass region; inc. 1832, made coextensive with Fayette co. 1974. , Mass.--(BUSINESS WIRE)--May 6, 2004 Company Reports $6.3 million in Cubicin(TM) Revenues; Reiterates 2004 Cubicin(TM) Revenue Guidance of $40 - 50 million EARNINGS CONFERENCE CALL & WEBCAST TODAY (WITH SLIDES) at 10:30 am ET Company Announces Webcast of Morgan Stanley  To comply with Wikipedia's , the introduction of this article needs a complete rewrite. Healthcare ConferencePresentation Tomorrow at 11:15 am ET Cubist Pharmaceuticals, Inc. (Nasdaq: CBST CBST Center for Biophotonics Science and Technology CBST Congregation Beth Simcha Torah (NYC) CBST Complete Binary Search Tree ) today reported results for the first quarter ended March 31, 2004. During the first full quarter since launch, Cubist achieved $6.3 million in revenues for its flagship antibiotic antibiotic, any of a variety of substances, usually obtained from microorganisms, that inhibit the growth of or destroy certain other microorganisms. Types of Antibiotics product Cubicin(TM) (daptomycin Daptomycin is a novel lipopeptide antibiotic used in the treatment of certain infections caused by Gram-positive organisms. It is a naturally-occurring compound found in the soil saprotroph Streptomyces roseosporus. for injection). Cubist management also reiterated its top-line revenue guidance of $40-50 million in CUBICIN sales for 2004. Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. W. Bonney Bon·ney , William H. Known as Bil·ly the Kid 1859-1881. American outlaw who murdered 21 men and was shot dead by Sheriff Pat Garrett (1850-1908). Noun 1. , President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Cubist, commented on the quarter: "We are very pleased with our financial performance this quarter, particularly with the level of CUBICIN sales reached. This gives us increased confidence in our ability to achieve our 2004 top-line guidance and we believe this strong performance, driven by the productivity of our sales and marketing team, indicates the growing unmet un·met adj. Not satisfied or fulfilled: unmet demands. medical needs that CUBICIN addresses." Total net revenue for the three months ended March 31, 2004 was $8.5 million, compared to $0.4 million for the three months ended March 31, 2003. The quarter-over-quarter increase was attributable to the $6.3 million in net product sales of CUBICIN, as well as the recognition of $1.4 million of deferred revenue related to upfront payments from Chiron Corporation Chiron Corporation was a multinational biotechnology firm based in Emeryville, California that was acquired by Novartis International AG on April 20 2006. It had offices and facilities in eighteen countries on five continents. received in 2003 and $0.8 million in revenue from Small Business Innovation Research grants. Research and development expense for the three months ended March 31, 2004 was $13.5 million, compared to $15.9 million for the three months ended March 31, 2003. This decrease is due to one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges incurred in the three months ended March 31, 2003 related to a milestone payment of $1.5 million to Sandoz For the pre-1996 company, see . Sandoz is the generics subsidiary of Novartis, a multinational pharmaceutical company. The company develops, manufactures and markets off-patent medicines as well as pharmaceutical and biotechnological active ingredients. GmbH GmbH Gesellschaft mit Beschränkter Haftung (German: limited liability company; business entity) for the successful completion of a clinical trial and $1.0 million of expenses relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of the research department. Sales and marketing expense for the three months ended March 31, 2004 was $8.5 million compared to $2.3 million for the three months ended March 31, 2003. This increase was driven by the hiring throughout 2003 of resources dedicated to the commercialization of CUBICIN in the U.S., as well as the company's marketing activities related to sales of CUBICIN that began in November November: see month. 2003. Other expense, net for the quarter ended March 31, 2004 was $2.7 million, compared to $2.9 million for the same period in 2003. The decrease in other expense reflects lower interest expense charges due to a payment of $10.0 million on debt at the end of 2003. For the quarter ended March 31, 2004, net loss was $23.2 million or a loss of $0.58 per share, compared to $25.0 million or $0.85 per share for the same period in 2003. As of March 31, 2004, Cubist had $110.0 million in cash, cash equivalents and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has . The total number of common shares outstanding as of March 31, 2004 was 40,219,577.
------------EARNINGS CONFERENCE CALL & WEBCAST INFORMATION------------
WHEN: Thursday May 6, 2004 at 10:30 am ET
LIVE DOMESTIC & CANADA CALL-IN: (800) 404-1354
LIVE INTERNATIONAL CALL-IN: (706) 643-0825
24-HOUR REPLAY DOMESTIC & CANADA: (800) 642-1687 (#6789300)
24-HOUR REPLAY INTERNATIONAL: (706) 645-9291 (#6789300)
CALL WILL ALSO BE BROADCAST LIVE, LISTEN ONLY, VIA THE WEB AND
SLIDES WILL BE PROVIDED AT:
www.cubist.com
Replay will be available for 30 days via the Internet;
a transcript of the call will be filed with the SEC and will also
be available upon request
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Cubist also announced today that its "fireside chat" at the Morgan Stanley 2nd Annual Global Healthcare Unplugged Conference 2004 will be Webcast via a link on the Cubist website under the Corporate Calendar section at 11:15 am ET on Friday, May 7th. About Cubist Cubist Pharmaceuticals, Inc. is a biopharmaceutical company focused on the research, development and commercialization of drugs that meet significant unmet medical needs. Since its founding in 1992, Cubist has been exclusively focused on exploiting business and product opportunities in the antiinfective antiinfective /an·ti·in·fec·tive/ (-in-fek´tiv) counteracting infection, or an agent that does this. marketplace. In the U.S., Cubist markets Cubicin(TM) (daptomycin for injection), the first antibiotic in a new class of antiinfectives called lipopeptides, for the indication of complicated skin and skin structure infections caused by Gram-positive gram-positive /gram-pos·i·tive/ (-poz´it-iv) retaining the stain or resisting decolorization by alcohol in Gram's method of staining, a primary characteristic of bacteria whose cell wall is composed of peptidoglycan and teichoic acid. bacteria. CUBICIN is currently the only once-daily bactericidal bactericidal /bac·te·ri·ci·dal/ (bak-ter?i-si´d'l) destructive to bacteria. Bactericidal An agent that destroys bacteria (e.g. antibiotic approved in the U.S. with activity against both methicillin-susceptible and methicillin-resistant Staphylococcus aureus methicillin-resistant Staphylococcus aureus Methicillin-aminoglycoside resistant Staphylococcus aureus, MRSA An organism with multiple antibiotic resistances–eg, aminoglycosides, chloramphenicol, clindamycin, erythromycin, rifampin, tetracycline, (MSSA MSSA Methicillin-Sensitive Staphylococcus Aureus MSSA Microscopy Society of Southern Africa MSSA Maryland Saltwater Sportfishermen's Association MSSA Military Selective Service Act MSSA Mid-South Sociological Association MSSA Minnesota Social Service Association and MRSA MRSA Methicillin-resistant Staphylococcus aureus. See MARSA. ). Cubist is headquartered in Lexington, MA. Cubist Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement Statements contained herein that are not historical fact may be forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and such statements 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 Cubist. These factors include, but are not limited to: (i) the level of acceptance of CUBICIN by physicians, patients, third-party payors, and the medical community generally; (ii) Cubist's ability to continue to develop, secure additional regulatory approvals for, and successfully market, CUBICIN; (iii) Cubist's ability to manufacture CUBICIN on a commercial scale; (iv) commercialization of products that are competitive with CUBICIN; (v) Cubist's ability to discover or in-license drug candidates; (vi) Cubist's ability to successfully develop drug candidates in its pipeline; (vii) Cubist's ability to successfully commercialize any product or technology developed by Cubist; (viii) Cubist's ability to establish and maintain successful manufacturing, sales and marketing, distribution, and development collaborations; (ix) legislative or regulatory changes adversely affecting Cubist or the biopharmaceutical industry; (x) Cubist's ability to protect its intellectual property and proprietary technologies; and (xi) Cubist's ability to finance its operations. Additional factors that could cause actual results to differ materially from those projected or suggested in any forward-looking statements are contained in Cubist's recent filings with the Securities and Exchange Commission, including those factors discussed under the caption "Risk Factors" in such filings. Cubicin is a trademark of Cubist Pharmaceuticals, Inc.
CUBIST PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
(in thousands)
March December
31, 31,
2004 2003
--------- ---------
ASSETS
Cash, cash equivalents and investments $110,029 $142,399
Property and equipment, net 44,647 45,221
Other assets 39,215 34,938
--------- ---------
Total assets $193,891 $222,558
========= =========
LIABILITIES AND STOCKHOLDERS' DEFICIT
Accounts payable $4,172 $3,655
Accrued expenses 20,855 26,191
Deferred revenue 11,700 13,118
Debt and capital lease obligations 197,282 197,810
--------- ---------
Total liabilities 234,009 240,774
--------- ---------
Total stockholders' deficit (40,118) (18,216)
--------- ---------
Total liabilities and stockholders' deficit $193,891 $222,558
========= =========
CUBIST PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
(in thousands, except share and per share data)
Three months ended
March 31,
-----------------------
2004 2003
----------- -----------
Product revenues, net $6,281 $-
License fee revenues 1,417 -
Collaborative agreement and other revenues 773 357
----------- -----------
Total revenues 8,471 357
Operating expenses:
Cost of product revenue 2,425 -
Research and development 13,461 15,889
Sales and marketing 8,549 2,329
General and administrative 4,577 4,198
----------- -----------
Total operating expenses 29,012 22,416
Operating loss (20,541) (22,059)
Interest income 423 667
Interest expense (3,175) (3,412)
Other expense 50 (188)
----------- -----------
Total other expense, net (2,702) (2,933)
Net loss $(23,243) $(24,992)
=========== ===========
Basic and diluted net loss per common share $(0.58) $(0.85)
Basic and diluted weighted average number of
common shares 40,142,207 29,230,160
Additional information can be found at Cubist's web site at www.cubist.com |
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