Cubist Pharmaceuticals (CBST) reported earnings per share of 34 cents for the first quarter of 2010 compared to 13 cents in the year-ago period. Last year’s quarter included a $20 million charge related to the upfront payment made under an exclusive agreement to Alnylam Pharmaceuticals (ALNY). The Zacks Consensus Estimate for the quarter was 35 cents.
However, after treating stock-based compensation as a regular expense and excluding non-recurring items, EPS for the quarter was 43 cents, higher than 37 cents in the year-ago period.
Revenue for the quarter recorded a year over year increase of 19% to $144.1 million. The primary reason for increased revenue was higher sales of Cubicin (daptomycin for injection) in the domestic market – $135.3 million (year-over-year growth of 20%). Sales in the international market increased 188% to $6.4 million.
Operating income during the quarter increased to $37.3 million compared to $15.8 million in the year-ago period. Last year’s figure was reduced by the upfront payment, mentioned above.
In addition to posting financial results, Cubist presented an update on its pipeline. Following the Calixa deal in 2009, Cubist gained rights to Calixa’s lead compound CXA-201 (containing CXA-101). CXA-201, a mid-stage candidate is being developed as an intravenous therapy to treat certain serious bacterial infections caused by Pseudomonas aeruginosa.
Enrollment in a phase II trial with CXA-101 for complicated urinary tract infections (cUTI) is complete.
Meanwhile, Cubist expects to initiate phase II trial of CXA-201 for complicated intra-abdominal infections (cIAI) by the first half of 2010. Additionally, the drug will be studied for the nosocomial pneumonia indication by the year end.
Cubist exited the quarter with $506.1 million in cash, cash equivalents. The company’s debt burden increased $3.4 million to $252.6 million.
Cubist has confirmed its revenue guidance for 2010. It expects revenue in the range of $627-$652 million, unchanged from the guidance provided in January 2010.
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