UPDATE: Leerink Swann Upgrades Cubist Pharmaceuticals Following Acquisition of TSRX

In a report published Thursday, Leerink Swann analyst Marko Kozul upgraded the rating on

from Market Perform to Outperform, and raised the price target from $57.00 to $76.00. In the report, Leerink Swann noted, “We are transitioning coverage of CBST with an Outperform (OP) rating (from Market Perform) following the recent completed acquisition of TSRX (we were OP) and expected acquisition of OPTR (OP) by 10.25.13. Our new $76 price target (PT) is primarily driven by our TSRX/OPTR pipeline revenue contributions to CBST and our projections for expense synergies. Upside to our estimates could be driven by: (1) an improving regulatory agency environment for anti-infective drugs (i.e., GAIN Act); (2) DIFICID potential in Bone Marrow Transplant (BMT) patients; (3) leverage of an EU-based sales force infrastructure; and (4) Gram-negative pipeline advances (i.e., Gyrase-B).” Cubist Pharmaceuticals closed on Wednesday at $65.68.