Date: Jan 24, 2014 Author: Don Seiffert Source: bizjournals (
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Cubist Pharmaceuticals crossed the $1 billion revenue threshold last year for the first time in 2013, and grew its global headcount nearly 50 percent to 1,000 in the same time.
The Lexington-based maker of drugs for infectious diseases, especially antibiotics and related treatments for use in hospitals, said its total sales last year were $1.1 billion, up 14 percent from the previous year. In the same time, its operating income was $190 million, lower than the $275 million in 2012 (adjusted to exclude one-time items).
The company said that in the coming year, its sales will grow about 17 percent to between $1.19 billion to $1.28 billion, surpassing analyst estimates of just $1.04 million.
CEO Micheal Bonney said in a conference call with investors that 2013 was a year of significant accomplishments for the company, including achieving blockbuster status for its antibiotic, Cubicin (more than $1 billion in sales) and the acquisition of two other companies, Trius Therapeutics and Optimer Pharmaceuticals. Those acquisitions, completed in the fall, cost the company $1.6 billion. As of Dec. 31, Cubist had $579 million in cash.
"We're pleased with the fact that after announcing plans to acquire two public companies on July 30, we moved forward decisively, and were able to close both transactions within less than three months," Bonney said.
The acquisitions were responsible for some, but not all, of the company's fast employee growth in the past year. Cubist began 2013 with 762 employees, including 516 in Massachusetts. Today the company has close to 1,000 employees, with 573 of those in-state and most of the remainder at a central international office in Zurich, Switzerland. The overall increase is despite 177 layoffs at New Jersey-based Optimer in early December. Cubist plans to close the New Jersey site this year.
Bonney said on the call that he plans to retain a small presence of about 35 employees in San Diego, the site of Trius, however. A company spokeswoman said that number represents a small reduction as the company consolidates all of its drug discovery efforts in its Lexington headquarters.
"This is a year in which our focus will be on execution and on delivery against multiple important milestones for Cubist," Bonney said.
