Cubist Pharma Turns To Profit In Q3, Results Beat View

(RTTNews) - Cubist Pharmaceuticals Inc. (CBST) on Tuesday reported a turnaround to profit in the third quarter, reflecting double-digit revenue growth and lower expenses. Both revenue and adjusted earnings per share for the quarter beat analysts' estimates.

Mike Bonney, CEO of Cubist said, "This was a strong quarter for Cubist in which we made significant progress against our 2014 financial and business objectives, driven by CUBICIN and meaningful contributions across our portfolio. We are pleased with the early interest in our new antibiotic for the treatment of adult acute bacterial skin and skin structure infections, SIVEXTRO, as well as the traction we are seeing in our re-launch of DIFICID and with sales of ENTEREG."

The Lexington, Massachusetts-based company reported net income for the third quarter of $22.83 million or $0.29 per share, compared to loss of $33.90 million or $0.50 per share in the prior-year quarter.

Excluding items, adjusted net income for the quarter was $52.41 million or $0.58 per share, compared to $32.73 million or $0.41 per share in the year-ago quarter.

On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $0.04 per share for the quarter. Analysts' estimates typically exclude one-time items.

Net revenues for the quarter increased 16 percent to $309.16 million from $265.99 million in the same quarter last year and beat analysts' consensus estimate of $306.75 million.

Total U.S. net product revenues grew 20 percent from last year to $291.88 million, while international net product revenues increased 28 percent to $16.62 million.

Total antibiotic drug Cubicin (daptomycin for injection) net product revenues in the U.S grew 12 percent from last year to $256.70 million, with U.S. net revenue representing an annualized run rate of greater than $1 billion.

U.S. net product revenues for Entereg (alvimopan) increased 12 percent from the year-ago period to $15.32 million, and U.S. Dificid (fidaxomicin) net product revenues in the quarter were $17.44 million.

Total costs and expenses for the quarter declined 8 percent from last year to $241.35 million.

In August, the European Medicines Agency or EMA said it has accepted for review Cubist Pharma's Marketing Authorization Application or MAA for its investigational antibiotic Zerbaxa, or ceftolozane/tazobactam for injection.

Cubist is seeking approval of Zerbaxa for the treatment of complicated urinary tract infections and complicated intra-abdominal infections, with a decision from the European Commission or EC expected during the second half of 2015.

Prior to the MAA acceptance, the U.S. Food and Drug Administration or FDA accepted the company's New Drug Application for Zerbaxa with priority review and assigned an action date of December 21, 2014.

CBST closed Tuesday's trading at $66.40, down $0.94 or 1.4 percent on a volume of 1.03 million shares.