UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
ý QUARTERLY REPORT UNDER
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2004
OR
o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER 0-21379
CUBIST PHARMACEUTICALS, INC.
(Exact Name of Registrant as Specified in Its Charter)
|
Delaware |
|
22-3192085 |
|
(State or Other Jurisdiction of |
|
(I.R.S. Employer |
65 Hayden Avenue, Lexington, MA 02421
(Address of principal executive offices)
(781) 860-8660
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934, or the Securities Exchange Act, during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ý No o
Number of shares of the registrant’s Common Stock, $0.001 par value, outstanding on May 5, 2004: 40,221,382.
Cubist Pharmaceuticals, Inc.
Form 10-Q
For the Quarter Ended March 31, 2004
Table of Contents
2
Item 1. Condensed Consolidated Financial Statements
Cubist Pharmaceuticals, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
|
|
|
March 31, |
|
December
31, |
|
||
|
|
|
(in
thousands, except share |
|
||||
|
ASSETS |
|
|
|
||||
|
Current assets: |
|
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
61,426 |
|
$ |
96,662 |
|
|
Short-term investments |
|
21,136 |
|
25,840 |
|
||
|
Accounts receivable, net |
|
3,435 |
|
1,310 |
|
||
|
Inventory |
|
5,785 |
|
3,793 |
|
||
|
Prepaid expenses and other current assets |
|
4,564 |
|
3,815 |
|
||
|
Total current assets |
|
96,346 |
|
131,420 |
|
||
|
Property and equipment, net |
|
44,647 |
|
45,221 |
|
||
|
Intangible assets, net |
|
19,275 |
|
19,981 |
|
||
|
Long-term investments |
|
27,467 |
|
19,897 |
|
||
|
Other assets |
|
6,156 |
|
6,039 |
|
||
|
Total assets |
|
$ |
193,891 |
|
$ |
222,558 |
|
|
|
|
|
|
|
|
||
|
LIABILITIES AND STOCKHOLDERS’ DEFICIT |
|
|
|
|
|
||
|
Current liabilities: |
|
|
|
|
|
||
|
Accounts payable |
|
$ |
4,172 |
|
$ |
3,655 |
|
|
Accrued liabilities |
|
20,855 |
|
26,191 |
|
||
|
Deferred revenue |
|
8,167 |
|
8,167 |
|
||
|
Current portion of long-term debt |
|
2,000 |
|
2,000 |
|
||
|
Current potion of capital lease obligations |
|
117 |
|
117 |
|
||
|
Total current liabilities |
|
35,311 |
|
40,130 |
|
||
|
Deferred revenue, net of current portion |
|
3,533 |
|
4,951 |
|
||
|
Long-term debt, net of current portion |
|
195,000 |
|
195,500 |
|
||
|
Capital lease obligations, net of current portion |
|
165 |
|
193 |
|
||
|
Total liabilities |
|
234,009 |
|
240,774 |
|
||
|
Commitments and contingencies |
|
|
|
|
|
||
|
Stockholders’ deficit: |
|
|
|
|
|
||
|
Preferred stock, non-cumulative; convertible, $.001 par value; authorized 5,000,000 shares; no shares issued and outstanding |
|
— |
|
— |
|
||
|
Common stock, $.001 par value; authorized 50,000,000 shares; 40,219,577 and 40,031,008 shares issued and outstanding as of March 31, 2004 and December 31, 2003, respectively |
|
40 |
|
40 |
|
||
|
Additional paid-in capital |
|
358,535 |
|
357,195 |
|
||
|
Accumulated deficit |
|
(398,693 |
) |
(375,451 |
) |
||
|
Total stockholders’ deficit |
|
(40,118 |
) |
(18,216 |
) |
||
|
Total liabilities and stockholders deficit |
|
$ |
193,891 |
|
$ |
222,558 |
|
The accompanying notes are an integral part of the condensed consolidated financial statements.
3
Cubist Pharmaceuticals, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
|
|
|
Three
months ended |
|
||||
|
|
|
2004 |
|
2003 |
|
||
|
|
|
(in
thousands except share and per share |
|
||||
|
|
|
|
|
|
|
||
|
Product revenues, net |
|
$ |
6,281 |
|
$ |
— |
|
|
License fee revenues |
|
1,417 |
|
— |
|
||
|
Collaborative agreement and other revenues |
|
773 |
|
357 |
|
||
|
Total revenues |
|
8,471 |
|
357 |
|
||
|
|
|
|
|
|
|
||
|
Costs and expenses: |
|
|
|
|
|
||
|
Cost of product revenues |
|
2,425 |
|
— |
|
||
|
Research and development |
|
13,461 |
|
15,889 |
|
||
|
Sales and marketing |
|
8,549 |
|
2,329 |
|
||
|
General and administrative |
|
4,577 |
|
4,198 |
|
||
|
Total costs and expenses |
|
29,012 |
|
22,416 |
|
||
|
|
|
|
|
|
|
||
|
Operating loss |
|
(20,541 |
) |
(22,059 |
) |
||
|
|
|
|
|
|
|
||
|
Other income (expense): |
|
|
|
|
|
||
|
Interest income |
|
423 |
|
667 |
|
||
|
Interest expense |
|
(3,175 |
) |
(3,412 |
) |
||
|
Other income (expense) |
|
50 |
|
(188 |
) |
||
|
Total other income (expense), net |
|
(2,702 |
) |
(2,933 |
) |
||
|
|
|
|
|
|
|
||
|
Net loss |
|
$ |
(23,243 |
) |
$ |
(24,992 |
) |
|
|
|
|
|
|
|
||
|
Basic and diluted net loss per common share |
|
$ |
(0.58 |
) |
$ |
(0.85 |
) |
|
Weighted average number of common shares outstanding for basic and diluted net loss per common share |
|
40,142,207 |
|
29,230,160 |
|
||
The accompanying notes are an integral part of the condensed consolidated financial statements.
4
Cubist Pharmaceuticals, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
|
|
|
Three
months ended |
|
||||
|
|
|
2004 |
|
2003 |
|
||
|
|
|
(in thousands) |
|
||||
|
Cash flows from operating activities: |
|
|
|
|
|
||
|
Net loss |
|
$ |
(23,243 |
) |
$ |
(24,992 |
) |