Cubist Profit Down 53%
LEXINGTON, Mass. (AP) - Cubist Pharmaceuticals Inc. said that its fourth-quarter profit dropped by more than half because of costs related to its acquisition of constipation drug maker Adolor Corp.
Cubist said its profit decreased 53 percent, to $6.8 million, or 11 cents per share. A year earlier the company reported a profit of $14.6 million, or 24 cents per share. Cubist said it earned 66 cents per share excluding one-time costs, such as items related to the Adolor deal. Its revenue grew 32 percent, to $212.9 million from $161.8 million.
Analysts expected Cubist to report a profit of 31 cents per share on revenue of $206.4 million, according to estimates compiled by FactSet.
U.S. sales of the company's antibiotic Cubicin grew 23 percent to $190.1 million. The company also reported $2.5 million from Entereg, which was developed by Adolor and is used as a treatment for constipation caused by opioid pain drugs. Cubist said its international revenue rose to $10.8 million from $6.3 million, and it also reported $3.7 million in service revenue and $5.7 million in other revenue.
Cubist bought Adolor on Dec. 12. It agreed to pay $4.25 in cash, or about $190 million, for each share of Adolor, and Adolor shareholders could get as much as $4.50 per share in additional payments if one of Adolor's drug candidates meets certain development milestones.
For all of 2011, Cubist's profit dropped 65 percent, to $33 million, or 52 cents per share, from $94.3 million, or $1.55 per share. Revenue grew 18 percent, to $754 million from $636.5 million.
Date: January 19, 2012
Source: Associated Press