Cubist Pharmaceuticals Inc. Q3 2008 Earnings Call Transcript

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2008-10-16 18:51:09.0

Tags: Physician, Call Transcript, Earnings, Cubist Pharmaceuticals Inc., Revenue Number, Seeking Alpha, Physician, Call Transcript, Earnings, Cubist Pharmaceuticals Inc., Revenue Number, Seeking Alpha

Question-and-Answer Session

Operator

Thank you. (Operator Instructions). First question is from Tom Shrader with Rodman & Renshaw. Please go ahead with your question.

Tom Shrader - Rodman & Renshaw

Good afternoon.

Mike Bonney

Hi, Tom.

Tom Shrader - Rodman & Renshaw

I have a question. The revenue numbers are quite good, maybe a little better than anybody thought. My memory is that there is a new initiative to try to hit additional positions in the hospital. Is that the origin? Is that going better than anticipated? Can you give us any more detail about where the extra sales are coming from and whether there is a trend?

Rob Perez

Hi, Tom, it is Rob. About a little over a year ago, we started trying to expand our efforts beyond ID. We have always called on ID to a great degree but we started to go outside to internists and hospitalists and other specialties. I would not say that is the major driver of our increased success. Really, I think it is our ability to communicate the differences between CUBICIN and vancomycin.

The concern that physicians increasingly have about vancomycin and its efficacy, particularly at the higher susceptibility ranges. So I think that is probably more of a driver than our increased call efforts. Still, the majority of our business comes from infectious disease physicians and while we are getting more use outside of ID, we still have some work to do there as well.

Tom Shrader - Rodman & Renshaw

Any sense that people are pushing dose as they get more comfortable with the drug?

Rob Perez

There is certainly a lot of buzz about higher doses with CUBICIN but we have not seen big movement in the dose. There is been slight increases in the overall dose, and I think we still believe that, in particular those physicians outside of ID. There is work that we can do for them to just make sure that they are using the drug appropriately in bacteremia. So there is definitely interest amongst the thought leaders but overall the dose movement has been pretty small. There is still room for growth there.

Tom Shrader - Rodman & Renshaw

Okay. Do you have a sense of what percent of the total of outpatient vancomycin use you have. You called it a smaller opportunity. Are you closer to saturated there, do you know?

Rob Perez

Well, we are nowhere near saturated in either market because vancomycin is such a dominant player in both. There is a reason for that comment really is just to make sure that we are not setting the expectation that we are always going to have this 45% outpatient mix. As we continue to grow the inpatient, that number overall could come down and still we could have healthy growth in outpatient and healthy growth in inpatient.

 

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