Cubist Pharmaceuticals Inc.
) fourth quarter 2012 earnings (excluding special items) of 48
cents per share were in line with the Zacks Consensus Estimate
and 20% below the year-ago earnings. The year-over-year decline
was primarily attributable to increased costs.
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Fourth Quarter in Details
Revenue in the final quarter of 2012 climbed 16% to $245.9
million. Revenues were in line with the Zacks Consensus Estimate.
The year-over-year beat 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.
Net product sales in the US climbed 17.8% to $227 million. Most
of the US sales came from Cubicin. Net sales of the product in
the US climbed 13.6% to $216 million in the final quarter of
2012. Cubicin also fared well in international markets with sales
of the drug rising 34.2% to $14.5 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
Entereg, added to Cubist Pharma's portfolio following the
acquisition of Adolor Corporation in Dec 2011, delivered revenues
of $10.9 million in the final quarter of 2012, up 8%
sequentially. During the quarter, Cubist Pharma recognized $3.7
million as service revenues pertaining to Dificid, flat year over
year. Cubist Pharma recorded $0.75 million as other revenues in
the final quarter of 2012.
Research and development (R&D) expenses climbed 59% to $89.2
million due to the company's efforts to develop its pipeline.
Selling, general and administrative (SG&A) expenses declined
3.1% to $47.3 million.
Full year adjusted earnings came in at $2.65 per share, well
above the Zacks Consensus Estimate of $1.98 and 7.7% above the
year-ago earnings. Revenues increased 23% to $926.4 million in
2012, edging past the Zacks Consensus Estimate of $926 million.
Revenues in 2012 came in near the top end of the guidance range
of $915-$930 million, which was provided by Cubist Pharma in Oct
Apart from announcing the financial results, Cubist Pharma also
gave guidance for 2013. The biopharmaceutical company expects to
end 2013 with revenues in the range of $1 - $1.045 billion driven
by strong sales of Cubicin in the US. The Zacks Consensus
Estimate is well within the guidance range provided by the
company and currently stands at $1.03 billion.
Net US sales of Cubicin are expected in the range of $900 - $925
million. International Cubicin sales for 2013 are projected in
the range of $53-$58 million. Net sales of Entereg in the US are
expected in the range of $45 - $50 million. Service revenues and
other revenues are expected to add up to $15 million in 2013.
Research and development costs for 2013 are projected in the
range of $375 and $395 million in 2012 ($277.7 million in 2012).
The increase is primarily due to Cubist Pharma's efforts to
develop its pipeline. Selling, general and administrative
expenses in 2013 are expected in the range of $180-$195 million
($171.8 million in 2012). Adjusted operating income is forecasted
in the range of $230 - $250 million for 2013.
Cubist Pharma carries a Zacks Rank #3 (Hold) in the short run.
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