UPDATE: Oppenheimer Initiates Coverage on Cubist Pharmaceuticals on Strong Antibiotic Portfolio
In a report published Thursday, Oppenheimer analyst Akiva Felt initiated coverage on Cubist Pharmaceuticals (NASDAQ: CBST) with an Outperform rating and $81.00 price target.
In the report, Oppenheimer noted, “Cubist develops acute care drugs for the hospital setting, with an emphasis on antibiotics. We recommend exposure to antibiotics due to the ongoing emergence of multiple-drug-resistant (MDR) infections, which maintain significant unmet medical needs and prevent the landscape from falling entirely to generic drugs. Cubist's broad antibiotic portfolio addresses key unmet needs, and its R&D platform should help maintain a thriving pipeline. Our bullish stance stems from CXA-201 in Phase 3 studies to treat gram-negative infections, with data expected in 4Q13. If it is approved, we expect peak CXA-201 sales to eclipse Cubicin. Moreover, we think CBST shares will benefit from increased M&A activity in biotech, as CXA-201 approval should lead to increased takeout speculation.”
Cubist Pharmaceuticals closed on Wednesday at $63.65.
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