Cubist Pharmaceuticals Reports Third-Quarter 2004 Results.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. -- Cubist Pharmaceuticals, Inc.:
Company Raises 2004 CUBICIN(R) Revenue Guidance to $55 to $60
million; Reports $18.0 million in CUBICIN Revenues, a 35% Increase
From Second Quarter 2004 Results
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 third quarter ended September September: see month. 30, 2004. During the third full quarter since launch, Cubist achieved $18.0 million in revenue 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(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), an increase of 35%, or $4.7 million, from second quarter 2004 CUBICIN revenue. Total net revenue for the three months ended September 30, 2004 was $19.4 million, compared to no revenue for the three months ended September 30, 2003. The quarter-over-quarter increase was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the $18.0 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. Research and development expense for the three months ended September 30, 2004 was $14.8 million, compared to $11.9 million for the three months ended September 30, 2003. The increase in research and development costs is primarily due to clinical development of Cubicin for additional indications and 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 their 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 from 2003 on expenses related to the CAB-175 program that was 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 for the three months ended September 30, 2004 was $9.1 million compared to $5.8 million for the three months ended September 30, 2003. This increase was primarily driven by the costs in 2004 of a fully staffed sales and marketing group dedicated to the commercialization of CUBICIN in the U.S., as well as marketing activities and programs related to sales of CUBICIN that began in November November: see month. 2003. For the quarter ended September 30, 2004, net loss was $17.7 million or $0.44 per share, compared to $34.2 million or $1.12 per share for the same period in 2003. As of September 30, 2004, Cubist had $63.2 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 September 30, 2004 was 40,327,292.
------------------CONFERENCE CALL & WEBCAST INFORMATION---------------
WHEN: Wednesday October 27, 2004 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 PASSCODES (both are required):
Account# 1628/Conference ID # 5255589
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
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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 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. 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
CUBIST PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
(in thousands)
September 30, December 31,
2004 2003
------------ -------------
ASSETS
Cash, cash equivalents and investments $ 63,243 $ 142,399
Accounts receivable, net 7,955 1,310
Inventory 5,778 3,793
Property and equipment, net 47,997 45,221
Other assets 29,946 29,835
------------ -------------
Total assets $ 154,919 $ 222,558
============ =============
LIABILITIES AND STOCKHOLDERS' DEFICIT
Accounts payable $ 5,877 $ 3,655
Accrued expenses 18,820 26,191
Deferred revenue 8,867 13,118
Debt and capital lease obligations 196,223 197,810
------------ -------------
Total liabilities 229,787 240,774
------------ -------------
Total stockholders' deficit (74,868) (18,216)
------------ -------------
Total liabilities and stockholders'
deficit $ 154,919 $ 222,558
============ =============
CUBIST PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
(in thousands, except share and per share data)
Three months ended Nine months ended
September 30, September 30,
------------------------ -----------------------
2004 2003 2004 2003
----------- ----------- ----------- -----------
Product revenues, net $ 17,988 $ - $ 37,526 $ -
License fee revenues 1,417 - 4,251 -
Collaborative
agreement and other
revenues 20 - 854 357
----------- ----------- ----------- -----------
Total revenues 19,425 - 42,631 357
Operating expenses:
Cost of product
revenue 6,440 - 13,403 -
Research and
development 14,818 11,887 41,314 41,131
Sales and marketing 9,101 5,822 25,364 11,905
General and
administrative 3,991 13,157 13,190 21,805
----------- ----------- ----------- -----------
Total operating
expenses 34,350 30,866 93,271 74,841
Operating loss (14,925) (30,866) (50,640) (74,484)
Interest income 378 393 1,289 1,705
Interest expense (3,170) (3,395) (9,517) (10,221)
Other income (expense) 12 (340) 46 (470)
----------- ----------- ----------- -----------
Total other
expense, net (2,780) (3,342) (8,182) (8,986)
Net loss $(17,705) $(34,208) $(58,822) $(83,470)
=========== =========== =========== ===========
Basic and diluted net
loss per common share $ (0.44) $ (1.12) $ (1.46) $ (2.80)
Basic and diluted
weighted average
number of common
shares 40,307,270 30,489,890 40,226,547 29,785,705
Additional information can be found at Cubist's web site at
www.cubist.com
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