Cubist's Preliminary Sales Impress - Analyst Blog


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Cubist Pharmaceuticals Inc. 's ( CBST ) total preliminary net revenues for the fourth quarter of 2011 climbed 30% to $210.3 million driven by strong sales of its antibiotic injection, Cubicin (daptomycin). Cubicin is marketed in the US and several other markets for the treatment of severe bacterial infections of the skin and bloodstream.

Preliminary fourth quarter revenues beat the Zacks Consensus Estimate of $205.0 million. Apart from revenues from Cubicin sales, total revenues at Cubist Pharma comprise service revenues pertaining to the company's agreement with Optimer Pharmaceuticals Inc. ( OPTR ) to co-promote Dificid in the US for C. difficile acquired diarrhea and other revenues. Detailed fourth quarter and full year 2011 results are scheduled on January 19, 2012.

Cubicin sales shot up 25% to $200.9 million in the final quarter of 2011. Most of the sales came from the US market ($190.1 million, up 23%). Cubicin also fared well in international markets with sales of the drug rising 71% to $10.8 million.

We note that the preliminary sales figures do not include data from the sales of Entereg, added to Cubist Pharma's portfolio following the acquisition of Adolor Corporation in December 2011. Entereg is marketed to expedite the time needed for upper and lower gastrointestinal recovery following partial large or small bowel resection surgery with primary anastomosis.

For full year 2011, total preliminary net revenues at Cubist Pharma climbed 18% to $751.4 million again driven by strong Cubicin sales. Preliminary 2011 revenues surpassed the Zacks Consensus Estimate of $746.0 million. Cubicin sales climbed 18% in 2011 to $735.5 million. The drug fared well in the US (up 17% to $699.8 million) as well as internationally (up 45% to $36.7 million).

Our Recommendation

Currently we have a Neutral recommendation on Cubist Pharma. The stock carries a Zacks #5 Rank (Strong Sell rating) in the short-run.

CUBIST PHARM ( CBST ): Free Stock Analysis Report
OPTIMER PHARMAC ( OPTR ): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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