Low Cubist Pharmaceuticals Inc (NASDAQ:CBST) Sales Have Led To a Drop in Earnings
Dallas, Texas, 04/24/2014 (ustrademedia) – Poor outlook on the basis of first quarter sales
The poor sales of the injectable drug Cubicin has caused tremendous unrest in the stock market. Stock analysts have been closely watching the response to this drug. They wanted to check the performance of the drug’s manufacturer in Q1.2014. Cubist Pharmaceuticals Inc (NASDAQ:CBST) has reported earnings which have been far short of the market’s expectations. Some figures predict a 71% shortfall as compared to a year ago.
While markets estimated a figure of $300 million in revenues, the company posted revenue of $260 million in 1Q2014. This was due to the poor sales recorded by Cubicin. In fact, most analysts expect a sharp decline in the price of the stock on the back of these figures.
Details of 1Q, 2014 as per official figures
The company showed a 12% increase in sales over the past year. This has led to revenue generation of close to $240 million. As per the reports, the sale of Cubicin in the US increased by 5%. However, the sequential sales figures show a decrease of 14.7%. The company has been on an acquisition spree in the past one year. Cubist Pharmaceuticals Inc (NASDAQ:CBST) has acquired Optimer Pharmaceuticals in October of 2013 and Trius Therapeutics in 3Q, 2013.
The acquisition of these two companies has added a number of drugs to the CBST pipeline. In fact, a drug launched by Trius is under review by the US FDA . Market experts believe that this drug will be launched in the market by June 2014. Once launched, this drug is expected to take on Pfizer Inc. (NYSE:PFE). CBST has a number of other drugs in the pipeline for which approvals have already been sought from the FDA.
Company expects a positive 2014
Cubist Pharmaceuticals Inc (NASDAQ:CBST) continues to aim for revenues between $1.19 to 1.27 billion in 2014. There are clear revenue targets maintained for each department. Some stock analysts feel that investors should hold on to the stock.