Company

Bank

Analyst

Coverage

Opinion

Wk chg

8/2 cls

Cubist Pharmaceuticals Inc. (NASDAQ:CBST)

Credit Suisse

Jason Kantor

Upgrade

Outperform (from neutral)

13%

$63.10

Kantor also raised his target to $69 from $56 after Cubist announced it will acquire partner Optimer Pharmaceuticals Inc. (NASDAQ:OPTR) for up to $801M and Trius Therapeutics Inc. (NASDAQ:TSRX) for up to $818M (see "Antibiotic Aggregator," A7). Cubist gains Optimer's Dificid fidaxomicin, which the companies have been co-promoting in the U.S. to treat Clostridium difficile-associated diarrhea (CDAD). Cubist also gains tedizolid, an antibiotic for which Trius plans to submit an NDA to FDA for both an oral and IV formulation to treat acute bacterial skin and skin structure infections (ABSSSI). An MAA submission to EMA is planned for 1H14. Kantor increased his revenue estimates to $1.3B from $1.2B for 2014 and $1.5B from $1.3B for 2015, and assumes Cubist can cut R&D by 15% and SG&A by 50%.