Investor Relations

This Year's 2009 Interactive Annual Report and Management Q&A

For our 2009 Annual Report, Cubist is offering an easy-to-navigate interactive version. The goal is to enhance the current and prospective shareholder viewing experience by using audio and video platforms to offer a more personal experience compared to the traditional printed version. In addition to delivering improved communications and print cost savings by utilizing Notice & Access, this option uses fewer natural resources in production, supporting our efforts in corporate social responsibility.

Building Long-term Shareholder Value

• Optimizing CUBICIN^® (daptomycin for injection)
• Expanding product portfolio
• Exercising strong financial discipline

Cubist Pharmaceuticals, Inc. (NASDAQ: CBST) is a biopharmaceutical company focused on the research, development and commercialization of products that address unmet medical needs in the acute care environment. CUBICIN^® (daptomycin for injection), our first in class I.V. antibiotic, has experienced the most successful I.V. antibiotic launch, in dollar terms, in U.S. history. A comparison with historical sales trends demonstrates the significant continued growth potential for CUBICIN. Cubist anticipates that CUBICIN sales will continue growing to > $1 billion annually in the U.S.

What's next for Cubist?

Cubist is moving forward confidently and successfully as an acute care-focused therapeutics company. We made marked progress over the past year as we continue to leverage the capabilities and infrastructure we have built. The steps we have taken have all been made with a focus on growing long term shareholder value. As reported on July 15, 2010, we grew both revenues and net income in 2Q10 compared to the same period a year earlier.

• 2Q10 total net revenues of $168.5M were up 29% vs. 2Q09. 2Q10 net income was $28.1M on a GAAP basis and $50M, or $0.74 per fully diluted share, on a non-GAAP basis, which represents an increase of $15.4M in non-GAAP net income compared to the same period in 2009. As of June 30, 2010, Cubist had $563 million in cash, cash equivalents and investments.
• Cubist’s acquisition of Calixa Therapeutics Inc. in December 2009, gives Cubist Calixa's rights to develop and commercialize the lead compound, CXA-201, and other products that incorporate the novel anti-pseudomonal cephalosporin, CXA-101, in all territories of the world except select Asia-Pacific and Middle East territories. CXA-201 is being developed as a first-line intravenous therapy for the treatment of certain serious Gram-negative bacterial infections in the hospital, including those caused by multi-drug resistant (MDR) Pseudomonas aeruginosa.
• Two Cubist-discovered drug candidates are also progressing through clinical trials. In April 2010, we initiated a Phase 2 trial for our oral antibiotic in development for the treatment of Clostridium difficile-associated diarrhea. Our I.V. antibiotic in development for infections caused by multi-drug-resistant Gram-negative bacteria such as Pseudomonas, Klebsiella, Acinetobacter and E. coli is completing Phase 1 trials. These well-differentiated drug candidates, if successfully developed and commercialized, would address areas of high unmet medical need.
• Cubist is working on several pre-clinical programs, addressing areas of significant medical need. These include an anti-infective program, in collaboration with Alnylam Pharmaceuticals, Inc., for the treatment of respiratory syncytial virus (RSV) in children, therapies to treat various serious bacterial infections, and agents to treat acute pain.