Cubist Pharmaceuticals Inc.
) recently inked an option agreement under which it has the
exclusive right to buy the privately-held Adynxx after the data
readout of the private company's phase II study on its primary
pipeline candidate AYX1. AYX1 is being developed for reducing
acute pain and preventing persistent as well as chronic pain
Cubist Pharma stated in its press release that it will pay
Adynxx to secure the option right. Cubist Pharma intends to
finance the transaction with its available cash balance.
Moreover, Cubist Pharma will make further payments to the
shareholders of Adynxx if it decides to exercise the option to
purchase Adynxx. The company is aiming to strengthen its pipeline
through this deal.
The important pipeline candidates at Cubist Pharma include
CB-5945 (opioid-induced constipation in patients with chronic
non-cancer pain), CXA-201 (complicated intra-abdominal infections
and complicated urinary tract infections) and CB-315 (
-acquired diarrhea, or CDAD). We are pleased with the company's
focus on developing its pipeline.
We believe that the pipeline at Cubist Pharma has to deliver
since it is currently highly dependent on Cubicin (daptomycin)
for growth. Cubicin is marketed in the US and several other
markets for the treatment of severe bacterial infections of the
skin and bloodstream.
Apart from revenues from Cubicin sales, total revenue at
Cubist Pharma comprises primarily of Entereg sales and service
revenues pertaining to the company's agreement with
) to co-promote Optimer's Dificid in the US for CDAD.
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Cubist Pharma, a biopharmaceutical company, carries a Zacks Rank
#3 (Hold). Biopharma stocks, which are presently well placed,
). Both stocks carry a Zacks Rank #2.