Cubist Pharma revises earnings

Lexington biopharmaceutical company Cubist Pharmaceuticals Inc. said today that it lowered its previously reported fourth-quarter earnings to reflect a hefty acquisition charge.

On Jan. 23, Cubist reported its fourth-quarter profit jumped 71 percent on higher sales of antibiotic Cubicin. The company earned $9.2 million, or 16 cents per share, compared with $5.4 million, or 9 cents per share, during the same period a year prior.

Revenue rose 52 percent to $85.6 million from $56.5 million.

Including a $1.2 million charge related to the December buyout of Illumigen Biosciences Inc., the revised earnings per share now total 14 cents for the fourth quarter, said Cubist today.

The charge reflects the cash on Illumigen's balance sheet on Dec. 26, the closing date of the acquisition. The all-cash payment for the acquisition includes the $1.2 million and is being paid in 2008. However, the company said all costs related to the transaction were charged to the 2007 fourth quarter, when the transaction closed.

The charge will be included in financial statements to be filed with the Securities and Exchange Commission. (AP)