Cubist Pharma profit fell 76 percent, but sales of Cubicin rose 23 percent in 4th quarter

Cubist 4Q profit tumbles without tax benefit

LEXINGTON, Mass. — Cubist Pharmaceuticals Inc. reported Thursday that its fourth-quarter profit dropped 76 percent from a year-ago period helped by a hefty tax benefit, but said sales of its antibiotic Cubicin sharply increased.

The company said its profit shrank to $22.7 million, or 38 cents per share, from $94.5 million, or $1.43 per share, in the year-ago quarter, which included a $127.8 million tax gain.

Revenue rose 27 percent to $166.7 million from $131.2 million, with U.S. sales of Cubicin growing 23 percent to $147.8 million. International revenue more than doubled to $4.9 million from $2.2 million, while service revenue rose to $13.5 million from $8 million.

A poll by Thomson Reuters showed analysts were expecting a higher profit of 41 cents per share, but sales topped their $165.6 million estimate.

Due partly to the tax benefit in 2008, the company said its profit fell 38 percent in 2009, to $79.6 million, or $1.36 per share, from $127.9 million, or $2.07 per share. Revenue increased 30 percent to $562.1 million from $433.6 million, with Cubicin sales up 26 percent to $524 million.

Cubist shares slipped 57 cents to $20 in aftermarket trading. The stock has ranged between $23 and $13.81 over the last year.