Needham & Company Maintains a 'Buy' on Cubist Pharmaceuticals (CBST); Favorably Inclined Towards the Stock

Needham & Company maintains a 'Buy' on Cubist Pharmaceuticals (NASDAQ: CBST).

Needham analyst says, "We do not believe CB-315 is sufficiently differentiated from Optimer’s (Nasdaq: OPTR) Dificid for substantial commercial success. Cubist is building drug supply in anticipation of potential additional development in 2012. A formal decision on Phase 3 trials will be made by early 4Q11."

"We are favorably inclined towards the stock. However, our positive bias is driven more by the potential for acquisition of the company than by long-term growth prospects for Cubicin and the pipeline, which we believe are modest. Under the settlement agreement with Teva, Cubicin exclusivity extends to June 2018 (with�pediatric extension). A pending patent application may extend this exclusivity to May 2021 (with pediatric extension) if added to the Orange Book listing."

For more ratings news on Cubist Pharmaceuticals click here and for the rating history of Cubist Pharmaceuticals click here.

Shares of Cubist Pharmaceuticals closed at $34.99 yesterday.

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