Back to top

Analyst Blog

Cubist Pharmaceuticals Inc.’s (CBST - Analyst Report) unaudited net revenues for the fourth quarter of 2012 climbed 16% year over year to $245.9 million, driven by strong sales of its antibiotic injection, Cubicin (daptomycin). Cubicin is marketed in the US and several other markets for the treatment of severe bacterial infections of the skin and bloodstream.

Fourth quarter 2012 revenues were in line with the Zacks Consensus Estimate. Apart from revenues from Cubicin sales, total revenue at Cubist Pharma comprises Entereg sales and service revenues pertaining to the company’s agreement with Optimer Pharmaceuticals Inc. to co-promote Dificid in the US for C. difficile acquired diarrhea.

Most of Cubicin sales in the final quarter of 2012 came from the US market ($216 million, up 14%). Cubicin also fared well in international markets with sales of the drug rising 34% to $14.5 million.

Entereg, which became a part of Cubist Pharma’s portfolio following the December 2011 acquisition of Adolor Corporation, delivered revenues of $10.9 million in the final quarter of 2012. During the quarter, Cubist Pharma recognized $3.7 million as service revenues pertaining to Dificid.

For full year 2012, total net revenue at Cubist Pharma climbed 23% to $926.4 million, again driven by strong Cubicin sales. Revenues in 2012 were in line with the Zacks Consensus Estimate. Cubicin fared well in the US (up 16% to $809.2 million) as well as internationally (up 38% to $50.5 million). Entereg sales and service revenues for 2012 were $40.2 million and $23.2 million, respectively. Detailed fourth quarter and full year 2012 results are scheduled on January 23, 2012.

Apart from announcing the sales figures, Cubist Pharma also provided an update on its promising pipeline candidate CXA-201. We note that CXA-201 is undergoing phase III studies for complicated intra-abdominal infections and complicated urinary tract infections caused by gram-negative bacterial infections.

The biopharmaceutical company expects to report top-line data from both the phase III studies in the second half of 2013. Cubist Pharma intends to seek US approval for both indications within approximately six months of reporting top line data from the studies.

We currently have a Neutral recommendation on Cubist Pharma. The stock carries a Zacks #3 Rank (Hold rating) in the short run. Stocks in the pharma sector that carry Zacks #1 Rank (Strong Buy) include Ironwood Pharma (IRWD - Analyst Report) and Valeant Pharma (VRX - Analyst Report).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
PLANAR SYST… PLNR 4.44 +5.21%
BITAUTO HOL… BITA 81.71 +5.12%
CTPARTNERS… CTP 16.66 +4.26%
CHINA BIOLO… CBPO 47.91 +3.30%
MALLINCKROD… MNK 72.94 +2.85%