Cubist Pharmaceuticals Inc.
) recently recalled four lots of its growth driver, Cubicin
(daptomycin), an antibiotic injection. Cubist Pharma stated in
its press release that this voluntary move was prompted by the
presence of particulate matter in multiple vials from the
affected lots. The company further stated that the presence of
particulate matter in vials is not entirely safe for
patients. Cubist Pharma is ensuring the return of the vials
in the affected lots.
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Though current supplies of Cubicin may not be interrupted, we
believe further slipups regarding Cubicin will impact the drug's
supplies. This will be catastrophic for the company since it is
entirely dependent on Cubicin for growth.
Cubicin is available in multiple countries across the globe for
the treatment of complicated skin and skin structure infections
caused by certain gram-positive bacteria, including
methicillin-resistant staphylococcus aureus and
methicillin-susceptible S. aureus and s. aureus bacteremia.
Cubist Pharma is looking to expand its product portfolio while
reducing the dependence on Cubicin through acquisitions. In Jul
2013, Cubist Pharma announced its intention to acquire a couple
of antibiotics makers to strengthen its antibiotics portfolio.
Cubist Pharma intends to acquire
Optimer Pharmaceuticals, Inc.
) and Trius Therapeutics. Both the deals are expected to close by
Following the deal with Optimer Pharma, Cubist Pharma extended
its deal with Optimer Pharma (which was scheduled to end in Jul
2013) by up to a year. As per the deal, the companies co-promote
Dificid (fidaxomicin) in the U.S. for the treatment of C.
difficile acquired diarrhea.
Cubist Pharma, a biopharmaceutical company, carries a Zacks Rank
#3 (Hold). However, biopharma stocks appearing to be more
Gilead Sciences Inc.
). Both the stocks carry a Zacks Rank #1 (Strong Buy).