Cubist Pharmaceuticals Inc.
) first-quarter 2013 earnings (excluding special items) of 34
cents per share beat the Zacks Consensus Estimate by a penny.
Earnings were however short of the year-ago figure by 38.2%. The
year-over-year decline was primarily attributable to higher
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Revenues in the first quarter of 2013 climbed 8.6% to $229.9
million. The year-over-year rise was attributable to strong sales
of antibiotic injection, Cubicin (daptomycin). Cubicin, which is
approved in the US and several other markets for the treatment of
severe bacterial infections of the skin and bloodstream,
accounted for the bulk of the revenues reported in the quarter.
Revenues were however short of the Zacks Consensus Estimate of
Net product sales in the US climbed 9.8% to $213.2 million. Most
of the US sales came from Cubicin. Net sales of the product in
the US climbed 9.4% to $202 million in the first quarter of 2013.
Cubicin did not perform well in international markets with sales
of the drug declining 2% to $12.4 million. Apart from revenues
from Cubicin sales, total revenue at Cubist Pharma comprises
primarily of Entereg sales and service revenues pertaining to the
company's agreement with
) to co-promote Dificid in the US for C. difficile acquired
diarrhea. The deal is expected to end in Jul 2013.
Entereg, added to Cubist Pharma's portfolio following the
acquisition of Adolor Corporation in Dec 2011, delivered revenues
of $11.2 million in the first quarter of 2013, up 2.8%
sequentially. During the quarter, Cubist Pharma recognized $3.6
million as service revenues pertaining to Dificid, flat year over
year. Cubist Pharma recorded $0.7 million as other revenues in
the first quarter of 2013.
Total operating expenses (on a reported basis) at Cubist Pharma
came in at approximately $164 million, up 67% due to higher
research and development (R&D) expenses, as Cubist Pharma
continues to invest in its pipeline. Reported operating expenses
were inclusive of the $25 million paid by Cubist Pharma to
Astellas Pharma Inc.
). Following the deal, Cubist Pharma acquired the remaining
rights of ceftolozane from Astellas. Ceftolozane is the key
component of Cubist Pharma's antibiotic candidate CXA-201
Following the new agreement, Cubist Pharma gained the rights to
develop and market CXA-201 in certain Asia-Pacific and the Middle
East countries. Cubist Pharma now has global rights pertaining to
2013 Guidance Tweaked
Apart from announcing its earnings results, Cubist Pharma made
some adjustments to its 2013 guidance provided in January. The
company now expects R&D costs for 2013 in the range of $400
million to $420 million (old guidance: $375 million to $395
million). The guidance was increased following the $25 million
recorded by Cubist Pharma as R&D expense in the first quarter
of 2013 pertaining to its deal with Astellas. Selling, general
and administrative expenses in 2013 are still expected in the
range of $180-$195 million. Adjusted operating income continues
to be forecast in the range of $230-$250 million for 2013.
Cubist Pharma also maintained its guidance pertaining to its
revenue items. Net US sales of Cubicin are still expected in the
range of $900-$925 million. International Cubicin sales for 2013
continue to be projected in the range of $53-$58 million. Net
sales of Entereg in the US are still expected in the range of
Cubist Pharma, a biopharmaceutical company, carries a Zacks Rank
) is more favorably placed in the biopharma space carrying a
Zacks Rank #2 (Buy).