Cubist Pharmaceuticals, Inc. (NASDAQ:CBST) swung to a loss in the second quarter. Cubist Pharmaceuticals, Inc is focused on the research, development and commercialization of pharmaceutical products that address unmet medical needs in the acute care environment.
Cubist Pharmaceuticals Earnings Cheat Sheet for the Second Quarter
Results: Swung to a loss of $20.6 million (34 cents per diluted share) in the quarter. The pharmaceutical company had net income of $28.1 million or 45 cents per share in the year earlier quarter.
Revenue: Rose 4.9% to $176.8 million from the year earlier quarter.
Actual vs. Wall St. Expectations: CBST reported adjusted net income of 59 cents per share. By that measure, the company topped the mean analyst estimate of 41 cents per share. Estimates ranged from 27 cents per share to 52 cents per share. Analysts were expecting revenue of $174.8 million.
Quoting Management: “This was truly an outstanding quarter in what we see as a transformational year for Cubist,” said Michael Bonney, President and CEO of Cubist. “In addition to our strong financial performance, driven in large measure by robust sales of CUBICIN, we reached a favorable settlement with Teva, announced a new strategic partnership with Optimer Pharmaceuticals, and continued to advance our exciting pipeline through positive top-line data emanating from Phase two studies on CXA-201 and CB-183,315. These milestones represent significant progress in Cubist’s ongoing goal of becoming a global acute care leader.”
Gross margin shrank 0.4 percentage point to 78%. The contraction appeared to be driven by increased costs, which rose 7% from the year earlier quarter while revenue rose 4.9%.
CBST’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $22.6 million in the first quarter, a profit of $14.6 million in the fourth quarter of the last fiscal year and $31.2 million in the third of the last fiscal year.
The company’s revenue has now risen for two straight quarters. In the first quarter, revenue increased 12.8% to $162.5 million from the year earlier quarter.
Competitors to Watch: Optimer Pharmaceuticals, Inc. (NASDAQ:OPTR), Merck & Co., Inc. (NYSE:MRK), Teva Pharmaceutical Industries Ltd (NASDAQ:TEVA), Theravance, Inc. (NASDAQ:THRX), Pfizer Inc. (NYSE:PFE), Novartis AG (NYSE:NVS), The Medicines Company (NASDAQ:MDCO) and Abbott Laboratories (NYSE:ABT).
(Source: Xignite Financials)