Cubist Pharmaceuticals, Inc. (CBST) reported a third-quarter net income of 65 cents per share, which was much higher than the Zacks Consensus Estimate of 33 cents. The company’s net income was 48 cents per share in the year-ago quarter. The higher profit in the quarter was primarily because of increased sales coming from all the segments.
Revenues in the quarter increased 28% to $143.5 million. U.S. product revenues increased 26.1% to $137.66 million in the quarter. Cubist recorded international product revenues of $3.93 million as against $1.43 million last year. Service revenues came in at $1.50 million from $1.42 million, and other revenues increased to $0.45 million from $0.39 million.
Research & Development (R&D) spend for the quarter increased 24.1% to $35.5 million. Sales & Marketing expenses for the quarter decreased 15% to $18.9 million. General & Administrative (G&A) spend increased to $12.8 million from $9.3 million in the year-ago quarter.
During the quarter, the company had a $15.9 million provision for income taxes, which ate into its profits. The company exited the quarter with $519.8 million in cash, cash equivalents and investments.
Cubist has also provided guidance for the entire year. It expects net US revenues for Cubicin, an antibiotic-resistant infection drug and its only marketed product, to be between $520 and $525 million. Cubicin net international revenues are expected to be around $12.5 million.
R&D spend for the year, inclusive of milestones and upfronts paid during the year, is expected to be around $170 million. Sales & Marketing expenses are expected to be around $85 million, and G&A is expected to be around $51 million. The company expects to end the year with a cash balance of around $560 million.
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