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

To: idos who wrote (242)	4/6/2011 3:38:38 PM
From: tuck	Read Replies (3) \| Respond to of 252

Interesting times for Cubist. First they get a little more mileage out of Cubicin by settling with Teva, good for a nice pop by itself. Next, they make a deal with Optimer to sell that company's treatment for C. Difficile -- even though they have their own program in that indication. cubist.com As I noted on the valuation thread, the panel did not go for the concept of superiority to vancomycin in C. Difficile. As such, I expect a niche market. I gather about 20% fail vanco, and the next logical step would be to prescribe the Optimer drug. But I doubt it makes inroads in first line treatment unless they actually try to compete on price with vanco. Unlikely, since that would mean going to generic pricing right away. Anyhow, I think CBST's valuation might be getting a bit lofty, that good news has just been priced in. What's your take? Cheers, Tuck