Cubist Pharmaceuticals Reports First Quarter 2012 Financial Results

  Cubist Pharmaceuticals Reports First Quarter 2012 Financial Results

          * Total Net Revenues of $211.7 million, Up 30% Over Q1 2011
       * Net Revenues for CUBICIN of $197.4 million, Up 22% Over Q1 2011
  * GAAP Net Income Up 45% and Non-GAAP Net Income Up 61% Over Q1 2011

Business Wire

LEXINGTON, Mass. -- April 18, 2012

Cubist Pharmaceuticals, Inc. (NASDAQ: CBST) today announced results for the
first quarter ended March 31, 2012. The Company will host a conference call
and webcast today at 5:00 p.m. ET (details below).

Financial highlights for the first quarter of 2012 (unaudited):

  * Total net revenues grew 30% to $211.7 million compared to $162.5 million
    in the same period in 2011.
  * Total net product revenues for CUBICIN® (daptomycin for injection)
    increased 22% to $197.4 million compared to $162.0 million in the first
    quarter of 2011. U.S. CUBICIN net product revenues increased 20% to $184.7
    million from $153.7 million in the first quarter of 2011.
  * GAAP net income grew 45% to $32.8 million, up from $22.6 million in the
    first quarter of 2011. GAAP net income was $0.52 and $0.45 per basic and
    diluted share, respectively, compared to $0.38 and $0.34 per basic and
    diluted share, respectively, in the first quarter of 2011.
  * Non-GAAP net income for the first quarter increased 61% to $66.3 million
    from $41.2 million in the first quarter of 2011. Non-GAAP net income was
    $1.05 and $0.82 per basic and diluted share, respectively, compared to
    $0.69 and $0.54 per basic and diluted share, respectively, in the first
    quarter of 2011.

Michael Bonney, President and CEO of Cubist, said, “With revenue growth of 30%
and non-GAAP net income up 61%, we are very pleased with the start of 2012.
This is a year of execution across the entire business, and we are making
strong progress on operational, strategic and financial goals. We remain
focused on leveraging our strong commercial model to drive the growth of
CUBICIN, DIFICID™ and ENTEREG® (alvimopan) and on making disciplined
investments in our pipeline to create long-term shareholder value.”

First quarter 2012 CUBICIN U.S. net product revenues were $184.7 million, up
20% from the first quarter of 2011. Cubist’s product revenues from
international sales of CUBICIN for the first quarter of 2012 were $12.7
million, an increase of 52% over revenues of $8.3 million in the first quarter
of 2011. ENTEREG net product revenues, which Cubist now sells as a result of
its acquisition of Adolor in December 2011, were $9.4 million for the first
quarter of 2012.

As of March 31, 2012, Cubist had $861.7 million in cash, cash equivalents and
investments. The total number of Cubist’s common shares outstanding as of
March 31, 2012 was 63,306,989.

Company Highlights for the first quarter of 2012

  * Completed integration of Adolor acquisition
  * Appointed to the Cubist Board of Directors Alison Lawton, Senior Vice
    President, General Manager Biosurgery, at Genzyme Corporation (now part of
    Sanofi);
  * Appointed to the Cubist Board of Directors Jane E. Henney, M.D., Professor
    of Medicine at the University of Cincinnati College of Medicine; and
  * Opened an expanded research facility at Company headquarters in Lexington,
    Massachusetts.

Use of Non-GAAP Financial Measures

Non-GAAP net income and non-GAAP net income per share exclude non-operational
activities. As a result, Cubist uses these measures to assess and analyze its
operational results and trends and to make financial and operational
decisions. Cubist also believes these non-GAAP financial measures are useful
to investors because they provide greater transparency regarding Cubist’s
operating performance. These non-GAAP financial measures should not be
considered an alternative to measurements required by GAAP, such as net income
and net income per share, and should not be considered measures of Cubist’s
liquidity. In addition, these non-GAAP financial measures are unlikely to be
comparable with non-GAAP information provided by other companies. A
reconciliation between non-GAAP financial measures and GAAP financial measures
is included in the tables accompanying this press release after the unaudited
condensed consolidated financial statements.

               ***********************CONFERENCE CALL & WEBCAST
                      INFORMATION***********************

Cubist will host a conference call and live audio webcast to discuss its first
  quarter 2012 financial results, business activities and financial outlook.

               WHEN: Wednesday, April 18, 2012 at 5:00 p.m. ET
                 LIVE DOMESTIC & CANADA CALL-IN: 877-407-8289
                   LIVE INTERNATIONAL CALL-IN: 201-689-8341

                24-HOUR REPLAY DOMESTIC & CANADA: 877-660-6853
                  24-HOUR REPLAY INTERNATIONAL: 201-612-7415

                REPLAY PASSCODES (BOTH REQUIRED FOR PLAYBACK):
                    ACCOUNT #: 351 CONFERENCE ID #: 391065

        CALL WILL ALSO BE BROADCAST LIVE, LISTEN ONLY, VIA THE WEB AT:
                                www.cubist.com

   Replay will be available for 30 days via the Internet at www.cubist.com

*********************************************************************************

About Cubist

Cubist Pharmaceuticals, Inc. is a biopharmaceutical company focused on the
research, development, and commercialization of pharmaceutical products that
address significant unmet medical needs in the acute care environment. Cubist
is headquartered in Lexington, Mass. Additional information can be found at
Cubist’s web site at www.cubist.com.

Cubist Safe Harbor Statement

This press release contains forward-looking statements. There are many factors
that could cause actual results to differ materially from those in these
forward-looking statements, including those factors discussed under the
caption "Risk Factors" in our most recent annual and quarterly reports filed
with the Securities and Exchange Commission. Forward-looking statements speak
only as of the date of this release, and Cubist undertakes no obligation to
update or revise these statements, except as may be required by law.

Cubist, CUBICIN and ENTEREG are registered trademarks of Cubist
Pharmaceuticals, Inc.

DIFICID is a trademark of Optimer Pharmaceuticals, Inc.

                               Tables to follow

CUBIST PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
(in thousands)
                                                          
                                             March 31,     December 31,
                                             2012          2011
                                                            
ASSETS
Cash, cash equivalents and investments       $ 861,681     $  867,695
Accounts receivable, net                       85,617         87,800
Inventory                                      70,734         70,000
Property and equipment, net                    169,699        168,425
Deferred tax assets, net                       13,720         16,189
In-process research and development            311,400        311,400
Other assets                                   346,787        365,946
                                                            
Total assets                                 $ 1,859,638   $  1,887,455
                                                            
                                                            
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses        $ 114,696     $  177,378
Deferred tax liabilities, net                  140,570        143,177
Deferred revenue                               35,707         31,524
Contingent consideration                       221,063        248,234
Debt and other liabilities, net                492,565        487,285
Total liabilities                              1,004,601      1,087,598
                                                            
Total stockholders' equity                     855,037        799,857
                                                            
Total liabilities and stockholders' equity   $ 1,859,638   $  1,887,455

CUBIST PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
UNAUDITED
(in thousands, except share and per share data)
                                                            
                                     Three months ended
                                     March 31,
                                     2012                    2011
                                                                             
Revenues:
U.S. CUBICIN product revenues, net   $ 184,707               $ 153,716
U.S. ENTEREG product revenues, net     9,442                   -           
Total U.S. product revenues, net       194,149                 153,716
International product revenues         12,654                  8,300
Service revenues                       3,664                   -
Other revenues                         1,225                   515         
Total revenues, net                    211,692                 162,531     
                                                                             
Costs and expenses:
Cost of product revenues               53,952                  36,577
Research and development               51,172                  40,416
Contingent consideration               2,829                   1,098
Selling, general and                   43,780                  40,164      
administrative
Total costs and expenses               151,733                 118,255     
                                                                             
Operating income                       59,959                  44,276
                                                                             
Other income (expense), net            (8,513     )            (6,807     )
                                                              
Income before income taxes             51,446                  37,469
                                                                             
Provision for income taxes             18,652                  14,884
                                                              
Net income                           $ 32,794                $ 22,585      
                                                                             
Basic net income per common share    $ 0.52                  $ 0.38
Diluted net income per common        $ 0.45         ^1       $ 0.34         ^1
share
                                                                             
Shares used in calculating:
Basic net income per common share      63,001,379              59,362,021
Diluted net income per common          84,386,002              79,533,776
share
                                                                             
 

^1 Includes add back of interest expense, debt issuance costs and debt
discount amortization on 2.25% notes and 2.50% notes to income, net of tax
effect

CUBIST PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - NON-GAAP
UNAUDITED
(in thousands, except share and per share data)
                                                            
                                       Three months ended
                                       March 31,
                                       2012                  2011
                                                                           
GAAP net income                        $ 32,794              $ 22,585
                                                                           
Non-cash debt discount amortization      4,827                 4,486
                                                                           
ENTEREG intangible asset                 4,589                 -
amortization
                                                                           
ENTEREG inventory step-up                534                   -
                                                                           
Expenses related to the acquisition      3,589                 -
of Adolor
                                                                           
Contingent consideration                 2,829                 1,098
                                                                           
Non-cash tax expense                     17,148                13,038
                                                              
Non-GAAP proforma net income           $ 66,310              $ 41,207
                                                                           
Non-GAAP basic net income per common   $ 1.05                $ 0.69
share
Non-GAAP diluted net income per        $ 0.82       ^1       $ 0.54       ^1  
common share
                                                                           
Shares used in calculating:
Non-GAAP basic net income per common     63,001,379            59,362,021
share
Non-GAAP diluted net income per          84,386,002            79,533,776
common share

¹ Includes add back of interest expense and debt issuance costs on 2.25% notes
and 2.50% notes to income, net of tax effect

Contact:

INVESTORS:
Cubist Pharmaceuticals, Inc.
Eileen C. McIntyre, 781-860-8533
Senior Director, Corporate Communications
eileen.mcintyre@cubist.com
or
MEDIA:
Cubist Pharmaceuticals, Inc.
Amy Reilly, 781-860-8623
Director, Corporate Communications
amy.reilly@cubist.com