Cubist Pharmaceuticals Reports Second Quarter 2006 Results; Total Revenues $47.8 Million; Net Product Revenues $45.7 Million, up 78% Vs. 2Q05; GAAP Loss $0.09 Per Share; Non-GAAP Income $0.06 Per Share.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 5:00 pm EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT 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 second quarter ended June June: see month. 30, 2006. Net product revenues for the second quarter of 2006 totaled $45.7 million, compared to $25.6 million for the second quarter of 2005, up 78% year-over-year. CUBICIN domestic revenue growth remains strong, with a 22% increase over the first quarter of 2006. Total revenues for the second quarter of 2006 were $47.8 million, compared to $28.3 million for the second quarter of 2005. The increase was attributable primarily to the significant growth in net product sales of CUBICIN. Net loss for the second quarter of 2006 on a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis was $5.1 million, or $0.09 per share, compared to $7.7 million or $0.15 per share for the second quarter of 2005. GAAP net loss includes $2.7 million, or $0.05 per share, in stock-based compensation expenses as a result of our adoption on January January: see month. 1, 2006 of Financial Accounting Standards No. 123R ("FAS 123R"). GAAP net loss also includes $5.7 million, or $0.10 per share, of costs related to the early repayment of the Company's $165.0 million of 5 1/2 % Convertible Subordinated Notes which were due in 2008. The $5.7 million consists of a prepayment penalty Prepayment penalty A fee a borrower pays a lender when the borrower repays a loan before its scheduled time of maturity. of $3.9 million and a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $1.8 million related to the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of the unamortized balance of debt issuance costs associated with the $165.0 million of 5 1/2 % Convertible Subordinated Notes. Non-GAAP net income, excluding the charges mentioned above was $3.3 million, or $0.06 per share. Use of Non-GAAP Financial Measures Cubist adopted FAS 123R on January 1, 2006 using the modified prospective method, which resulted in the recognition of stock compensation expenses in the statement of operations See Income statement. during the first and second quarters of 2006 without adjusting the prior year first and second quarters. Cubist uses non-GAAP financial measures to improve its analysis of operational results and trends. Cubist's management also uses these non-GAAP financial measures 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 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 con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge .
CONFERENCE CALL & WEBCAST INFORMATION
Cubist will host a conference call and live audio webcast today at
5:00 p.m. EDT to discuss second quarter financial results, the
company's business activities, and financial outlook.
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 Account # 286 & Conference ID # 204945 (both are needed)
CALL ALSO WILL BE BROADCAST LIVE, LISTEN ONLY, VIA THE INTERNET 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 antiinfective antiinfective /an·ti·in·fec·tive/ (-in-fek´tiv) counteracting infection, or an agent that does this. products that address unmet un·met adj. Not satisfied or fulfilled: unmet demands. medical needs in the acute care environment. 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. The Cubist product pipeline includes our lipopeptide program, the product candidate HepeX-B(TM) and our natural products screening program. Cubist is headquartered in Lexington, MA. Additional information can be found at www.cubist.com. 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) whether we will receive, and the potential timing and scope of, regulatory approvals or clearances to market CUBICIN in other countries and for additional indications in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and other countries pursuant to our currently-planned filings and any filings we determine to make in the future, which filings are subject to approval by the applicable regulatory agency regulatory agency Independent government commission charged by the legislature with setting and enforcing standards for specific industries in the private sector. The concept was invented by the U.S. or agencies, regardless of our confidence in the results of the clinical trials supporting such filings; (ii) the level of acceptance of CUBICIN by physicians, patients, and the medical community and the continued availability of reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. from third-party payors, including governments, private insurance plans and managed care providers; (iii) any changes in the current or anticipated market demand or medical need for CUBICIN; (iv) competition, particularly with respect to CUBICIN; (v) whether the 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. accepts proposed clinical trial protocols A Clinical Trial Protocol is a document that describes the objective(s), design, methodology, statistical considerations, and organization of a clinical trial. The protocol usually also gives the background and reason the trial is being conducted, but these could be provided in that may be achieved in a timely manner; (vi) our ability to conduct successful clinical trials in a timely manner; (vii) the ability of our third party manufacturers, including our single source provider of bulk drug substance, to manufacture sufficient quantities of CUBICIN in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with Good Manufacturing Practices Good Manufacturing Practice or GMP (also referred to as 'cGMP' or 'current Good Manufacturing Practice') is a term that is recognized worldwide for the control and management of manufacturing and quality control testing of foods and pharmaceutical products. and at an acceptable cost; (viii) our dependence upon pharmaceutical and biotechnology collaborations; (ix) our ability to finance our operations; (x) the effectiveness of our expanded sales force; (xi) potential costs resulting from product liability or other third party claims; (xii) our ability to protect our proprietary technologies; (xiii) our ability to discover, in-license, or acquire drug candidates and develop and achieve commercial success for drug candidates; (xiv) our ability to integrate successfully the operations of any business we may acquire and the potential impact of any future acquisition on our financial results; and (xv) a variety of risks common to our industry, including ongoing regulatory review, litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc intellectual property, and legislative or regulatory changes. 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 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.
CUBIST PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
(in thousands)
June December
30, 31,
2006 2005
-------- --------
ASSETS
Cash, cash equivalents and investments $271,721 $101,748
Accounts receivable, net 17,814 14,701
Inventory 19,486 16,695
Property and equipment, net 47,924 46,027
Other assets 42,113 38,894
-------- --------
Total assets $399,058 $218,065
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses $ 26,932 $ 35,138
Deferred revenue 1,250 1,250
Debt, capital lease and other obligations 352,069 165,078
-------- --------
Total liabilities 380,251 201,466
-------- --------
Total stockholders' equity 18,807 16,599
-------- --------
Total liabilities and stockholders' equity $399,058 $218,065
======== ========
CUBIST PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
(in thousands, except share and per share data)
Three months ended Six months ended
June 30, June 30,
------------------------- -------------------------
2006 2005 2006 2005
----------- ----------- ----------- -----------
Revenues:
Product
revenues, net $ 45,681 $ 25,642 $ 83,622 $ 46,531
Other revenues 2,113 2,613 4,227 5,406
----------- ----------- ----------- -----------
Total
revenues,
net 47,794 28,255 87,849 51,937
Costs and
expenses:
Cost of product
revenues 11,790 7,371 21,922 14,296
Research and
development 13,674 12,636 27,255 26,379
Sales and
marketing 14,249 10,083 28,317 19,628
General and
administrative 6,607 4,241 13,275 9,003
----------- ----------- ----------- -----------
Total costs
and
expenses 46,320 34,331 90,769 69,306
Operating income
(loss) 1,474 (6,076) (2,920) (17,369)
----------- ----------- ----------- -----------
Other expense, net (6,547) (1,672) (8,033) (3,261)
----------- ----------- ----------- -----------
Net loss $ (5,073) $ (7,748) $ (10,953) $ (20,630)
=========== =========== =========== ===========
Basic and diluted
net loss per
common share $ (0.09) $ (0.15) $ (0.20) $ (0.39)
Basic and diluted
weighted average
number of common
shares 54,347,892 53,292,670 54,214,340 52,404,707
CUBIST PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - NON GAAP
UNAUDITED
(in thousands, except share and per share data)
Three months ended Six months ended
June 30, June 30,
------------------------- -------------------------
2006 2005 2006 2005
----------- ----------- ----------- -----------
GAAP net loss $ (5,073) $ (7,748) $ (10,953) $ (20,630)
Stock-based
compensation
expense under
SFAS 123R 2,676 - 5,251 -
Debt prepayment
penalty and write
off of debt
issuance costs 5,662 - 5,662 -
----------- ----------- ----------- -----------
Non-GAAP proforma
net income (loss) $ 3,265 $ (7,748) $ (40) $ (20,630)
=========== =========== =========== ===========
Non-GAAP basic net
income (loss) per
common share $ 0.06 $ (0.15) $ (0.00) $ (0.39)
Basic weighted
average number of
common shares 54,347,892 53,292,670 54,214,340 52,404,707
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