Cubist Pharmaceuticals Reports Fourth Quarter and Full Year 2004 Results; Full Year Revenues Total $68.1 Million.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. -- EARNINGS CONFERENCE CALL & WEBCAST TODAY (WITH SLIDES) AT 10:30 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 fourth quarter and year ended December December: see month. 31, 2004. Revenues for the year ended December 31, 2004 totaled $68.1 million versus $3.7 million for the year ended December 31, 2003. The increase in revenue is primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to 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 Cubicin(R) (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), which totaled $21.0 million and $58.6 million for the fourth quarter and full year 2004, respectively. Net loss for the fourth quarter of 2004 was $17.7 million, or $0.40 per share, as compared to $31.5 million or $0.83 per share for the fourth quarter of 2003. Net loss for the full year 2004 was $76.5 million or $1.86 per share as compared to $115.0 million or $3.61 per share for the full year 2003. Results for the Quarter Ended December 31, 2004 Total net revenue for the three months ended December 31, 2004 was $25.4 million, compared to $3.4 million for the three months ended December 31, 2003. The quarter over quarter increase was primarily attributable to an increase of $19.3 million in net product sales of CUBICIN, as well as the recognition of $2.5 million of deferred license fee revenue related to Cubist's 1999 cross license agreement with Diversa Diversa was a San Diego, California-based biotechnology company that specialized in metagenomics and the development of high performance specialty enzymes for applications in biofuels and other industrial applications. Corporation. The entire upfront license fee was recorded as deferred revenue at the date of the agreement and was taken into revenue upon the expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created of a repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan provision in November November: see month. 2004. Research and development expense for the three months ended December 31, 2004 was $16.0 million, compared to $13.4 million for the same period in 2003, an increase of $2.6 million or 19%. The increase in research and development expense is primarily due to an increase in clinical trial expenses, employee-related expenses, the development of a second CUBICIN bulk drug substance manufacturer and a second fill-finish site for CUBICIN, as well as expenses related to Cubist's license agreement with XTL XTL Crystal XTL Xpress Train Limited XTL Anything-To-Liquids (synthetic fuels) XTL XML Template Language XTL Xml Transformation Language XTL Extensible Transformation Language XTL Executable Temporal Language Biopharmaceuticals Ltd. for the investigational monoclonal antibody monoclonal antibody, an antibody that is mass produced in the laboratory from a single clone and that recognizes only one antigen. Monoclonal antibodies are typically made by fusing a normally short-lived, antibody-producing B cell (see immunity) to a fast-growing product currently known as HepeX-B(TM). These increases are offset by a decrease in expenses related to the CAB-175 and OCTX programs, which were discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: in the first quarter of 2004. Sales and marketing expense was $9.7 million for the three months ended December 31, 2004 as compared to $9.2 million in the same period of 2003, an increase of $0.5 million, or 5%. This increase was primarily driven by higher employee-related expenses in the fourth quarter of 2004 as compared to the fourth quarter of 2003 offset by lower marketing costs from quarter-to-quarter as marketing costs in the fourth quarter of 2003 were higher to support the initial launch of CUBICIN. General and administrative expense for the three months ended December 31, 2004 was $7.1 million as compared to $8.2 million for the same period in 2003, a decrease of $1.1 million, or 13%. The decreased spending in 2004 is primarily due to a lease termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. charge of $3.8 million, or $0.10 per share, which was recorded in the fourth quarter of 2003. This decrease was offset by a $2.2 million charge recorded in the fourth quarter of 2004 related to the write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of a patent unrelated to CUBICIN. Results for the Year Ended December 31, 2004 Total net revenue for the twelve months ended December 31, 2004 was $68.1 million, compared to $3.7 million for the twelve months ended December 31, 2003, an increase of $64.4 million. The Company recorded net product sales of $58.6 million for the year ended December 31, 2004, compared to $1.7 million for the year ended December 31, 2003. Also contributing to the increase in revenue was the recognition of $5.7 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, compared to $1.4 million recognized for the year ended December 31, 2003. Cubist also recognized $2.5 million of deferred license fee revenue from Diversa, related to its 1999 cross license agreement with Diversa. Research and development expense for the year ended December 31, 2004 was $57.2 million compared to $54.5 million for 2003, an increase of $2.7 million, or 5%. The increase in research and development costs is primarily due to an increase in clinical trial expenses, employee-related expenses, expenses related to Cubist's license agreement with XTL Biopharmaceuticals Ltd. for the investigational monoclonal antibody product currently known as HepeX-B(TM), and expenses associated with the development of a second CUBICIN bulk drug substance manufacturer and a second fill-finish site for CUBICIN. These increases were offset by expenses incurred in 2003 and not in 2004 to bring the first CUBICIN bulk drug manufacturer up and running as well as decreased expenses in 2004 related to the CAB-175 and OCTX research programs, which was discontinued in the first quarter of 2004. Sales and marketing expense for 2004 was $35.0 million compared to $21.1 million for 2003, an increase of $13.9 million or 66%. This increase was primarily driven by higher employee-related expenses as a result of having a fully staffed sales and marketing group for the full year 2004 as well as marketing activities and programs related to sales of CUBICIN that began in November 2003. General and administrative expense for 2004 was $20.2 million compared to $30.0 million for 2003, a decrease of $9.8 million, or 33%. The decreased spending in 2004 is primarily due to the one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. lease termination charge recorded in 2003 of $12.9 million or $0.40 per share for the full year 2003. This decrease was offset by a $2.2 million charge recorded in the fourth quarter of 2004 to write down a patent unrelated to CUBICIN. As of December 31, 2004, Cubist had $128.4 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 December 31, 2004 was 51,153,827.
-----------------CONFERENCE CALL & WEBCAST INFORMATION----------------
WHEN: Tuesday, January 25, 2005 at 10:30 am ET
LIVE DOMESTIC & CANADA CALL-IN: (800) 473-6123
LIVE INTERNATIONAL CALL-IN: (973) 582-2706
24-HOUR REPLAY DOMESTIC & CANADA: (877) 519-4471
REPLAY CONFERENCE ID # 5506269
CALL WILL ALSO BE BROADCAST LIVE, LISTEN ONLY, VIA THE WEB 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
----------------------------------------------------------------------
About Cubist Cubist Pharmaceuticals, Inc. is a biopharmaceutical company focused on the research, development and commercialization of antiinfective antiinfective /an·ti·in·fec·tive/ (-in-fek´tiv) counteracting infection, or an agent that does this. products that meet unmet un·met adj. Not satisfied or fulfilled: unmet demands. medical needs. In the U.S., Cubist markets Cubicin(R) (daptomycin for injection), the first 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 in a new class of antiinfectives called lipopeptides. 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. ) in complicated skin and skin structure infections. Cubist's pipeline includes HepeX-B(TM), a monoclonal antibody biologic currently in the second of two Phase 2 trials to determine its potential for the prevention of infection by the Hepatitis B Hepatitis B Definition Hepatitis B is a potentially serious form of liver inflammation due to infection by the hepatitis B virus (HBV). It occurs in both rapidly developing (acute) and long-lasting (chronic) forms, and is one of the most common chronic virus (HBV HBV hepatitis B virus. HBV abbr. hepatitis B virus ) in liver transplant liver transplant Hepatic transplant Transplant surgery A procedure that replaces a cancer conquered, metabolically defeated, or substance subjugated liver with one no longer required by its owner, many of whom donate same after an MVA Diseases requiring transplant patients, and research efforts focused on novel members of the lipopeptide class of molecules and on natural products discovery.. 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 reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. 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, including HepeX-B; (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. Cubist and Cubicin are registered trademarks of Cubist Pharmaceuticals, Inc.; HepeX-B is a trademark of XTL Biopharmaceuticals Ltd. Additional information can be found at Cubist's web site at www.cubist.com
Tables Follow
CUBIST PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
(in thousands)
Dec. 31, Dec. 31,
2004 2003
--------- ---------
ASSETS
Cash, cash equivalents and investments $ 128,386 $ 142,399
Property and equipment, net 47,948 45,221
Other assets 39,574 34,938
--------- ---------
Total assets $ 215,908 $ 222,558
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Accounts payable $ 5,504 $ 3,655
Accrued expenses 19,413 26,191
Deferred revenue 4,950 13,118
Debt and capital lease obligations 165,195 197,810
--------- ---------
Total liabilities 195,062 240,774
--------- ---------
Total stockholders' equity (deficit) 20,846 (18,216)
--------- ---------
Total liabilities and stockholders' equity
(deficit) $ 215,908 $ 222,558
========= =========
CUBIST PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
(in thousands, except share and per share data)
Three months ended Twelve months ended
December 31, December 31,
----------------------- ---------------------
2004 2003 2004 2003
----------- ----------- ---------- ----------
Revenues:
Product revenues,
net $ 21,033 $ 1,673 $ 58,559 $ 1,673
License fee revenues 4,017 1,517 8,268 1,517
Collaborative
agreement and other
revenues 390 170 1,244 526
----------- ----------- ---------- ----------
Total revenues $ 25,440 $ 3,360 $ 68,071 $ 3,716
Costs and expenses:
Cost of product
revenue 6,846 816 20,249 816
Research and
development 15,957 13,374 57,182 54,505
Sales and
marketing 9,655 9,185 35,019 21,090
General and
administrative 7,075 8,174 20,234 29,978
----------- ----------- ---------- ----------
Total costs
and
expenses 39,533 31,549 132,684 106,389
Operating loss (14,093) (28,189) (64,613) (102,673)
Other income (expense):
Interest income 478 476 1,767 2,182
Interest expense (4,090) (3,380) (13,607) (13,601)
Other income
(expense) 15 (440) (59) (911)
----------- ----------- ---------- ----------
Total other
income
(expense), net (3,597) (3,344) (11,899) (12,330)
Net loss $(17,690) $(31,533) $(76,512) $(115,003)
=========== =========== ========== ==========
Basic and diluted net
loss per common share $ (0.40) $ (0.83) $ (1.86) $ (3.61)
Basic and diluted
weighted average number
of common shares 44,211,684 38,065,054 41,228,275 31,872,555
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion