Cubist’s Cubicin Meets Study Goal – Analyst Blog

Cubist Pharmaceuticals Inc. (CBST) recently announced results of a mid-stage trial that was conducted with its antibiotic injection, Cubicin (daptomycin). Cubicin, which is approved in the United States and several other markets, is indicated for the treatment of severe bacterial infections of the skin and bloodstream.

 

The phase II trial was designed to evaluate the safety and tolerability of Cubicin at two dose levels (6 and 8 mg/kg) compared with a certain standard-of-care antibiotic (vancomycin, teicoplanin or semi-synthetic penicillins), administered for about six weeks. The study was conducted with patients who suffered from infections around their prosthetic hips or knees and had to undergo surgery to remove the infected prosthesis. The number of adverse events for both dosing regimens was similar to comparator therapy.

 

The company plans to submit these results later this year at an infectious disease conference.

 

Cubicin is the only marketed drug at Cubist and accounts for about 95% of the company’s total revenue. For the fiscal year 2010, the company expects sales of Cubicin to range from $600 million to $620 million.

 

The company purchased Cubicin’s worldwide development and commercialization rights from Eli Lilly and Co. (LLY) in 1997 in exchange of royalties on product sales. Cubist currently commercializes Cubicin on its own in the U.S. and has distribution agreements with several companies for the commercialization of the drug in all countries outside the U.S.

 

Cubist is partnered with Novartis AG (NVS) for the marketing of Cubicin in Europe and some other international markets. The company also has a development and commercialization agreement with AstraZeneca plc (AZN) for China and certain other markets in Asia. Cubist has an agreement with Merck & Co. Inc. (MRK) for the development and commercialization of Cubicin in Japan.

 

We currently have a Neutral recommendation on Cubist. In addition to increasing competition for Cubicin, we are concerned about the pending litigation with Teva Pharmaceutical Industries Ltd. (TEVA) which is seeking to launch a generic version of Cubicin. The ongoing litigation poses a significant threat to the Cubicin franchise and will be a source of overhang on the company’s shares in the foreseeable future.

 

However, we are pleased to see that Cubist is working on expanding its pipeline through partnerships and acquisitions. The recent acquisition of Calixa Therapeutics is an example of the company’s efforts to expand its pipeline.