Cubist Pharmaceuticals, Inc.
) recently announced the first enrolment in one of two identical,
global phase III studies of CB-315. The pivotal studies will
evaluate the safety and efficacy of the candidate versus
) Vancocin (vancomycin) in patients suffering from clostridium
difficile-associated diarrhea (CDAD). Around 608 patients will be
enrolled in each trial.
We are pleased with the company's focus on developing its
pipeline. Currently marketed products at Cubist Pharma include
Cubicin and Entereg. Entereg became a part of the company's
portfolio following the December 2011 acquisition of Adolor.
In June 2012, the company discussed its strategic goal for the
next five years. Cubist Pharma expects research and development
expense to account for 25% of total revenues by 2017. Cubist Pharma
also intends to focus on pipeline candidates, CXA-201 and CB-5945,
apart from CB-315.
We remind investors that, in May 2012, Cubist Pharma announced
positive results from two phase II studies of CB-5945. The other
pipeline candidate, CXA-201, is in phase III development. Cubist
Pharma also intends to file one investigational new drug (IND)
application every 18 months. Merger and acquisition and
in-licensing activities and other partnerships should help the
company boost its pipeline.
As far as revenues are concerned, Cubist Pharma expects to
generate around $2 billion of global revenues in 2017 on the back
of organic growth. The company expects Cubicin sales in the US
alone to exceed $1 billion and Entereg sales of about $100 million
We believe that the successful development of the late-stage
candidates would allow the company to achieve its $2 billion
revenue guidance for 2012. We currently have a Neutral
recommendation on Cubist Pharma. The stock carries a Zacks #3 Rank
(Hold rating) in the short run.
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