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Biotech / Medical : CUBIST PHARMACEUTICALS (CBST) -- Ignore unavailable to you. Want to Upgrade?

To: tuck who wrote (226)	4/10/2008 2:06:10 PM
From: idos	Read Replies (1) \| Respond to of 252

Second Look: Wall Street Clears Cubist biz.yahoo.com Cubist Pharmaceuticals Shares Gain After Analysts Say Antibiotic Is Safe Despite FDA Report NEW YORK (AP) -- Shares of Cubist Pharmaceuticals Inc. climbed on Thursday as analysts shrugged off a Food and Drug Administration report that an industrial chemical had been found in one of the company's antibiotics. Shares of Cubist gained 90 cents, or 4.5 percent, to $20.43, recouping its losses from the day before. Robert W. Baird analyst Thomas Russo said in a client note that he expected no "material impact" on the Lexington, Mass., drug maker as a result of Wednesday's report, which said a chemical used to make rubber was found in the company's Cubicin drug if the drug was stored in Readymed drug pumps. On Wednesday, Cubist lost 58 cents, or 2.9 percent, to $19.53 on the news. Readymed pumps are manufactured by Cardinal Health Inc. Russo said the contamination likely had nothing to do with defects in Cubicin itself, but rather was the result of leeching from the pump, which can be substituted with other methods of delivery. The analyst added that Cubicin has big revenue potential for Cubist and "has had the most successful antibiotic launch ever." Russo reiterated his "Outperform" rating on the company and left his $28 price target unchanged. Jefferies & Co. analyst Eun K. Yang echoed those sentiments in a separate note after holding talks with Cubist management, saying shares of Cubist were trading 40 percent cheaper than its peers. Yang also rates Cubist "Buy."