Needham Maintains Hold On Cubist Pharmaceuticals Following Zerbaxa FDA Approval
In a research report issued today, Needham analyst Alan Carr maintained a Hold rating on Cubist Pharmaceuticals (NASDAQ:CBST), following last Friday’s news that the company’s Zerbaxa has been approved for the treatment of complicated Urinary Tract Infections (cUTI) and complicated Intra-abdominal Infections (cIAI).
Carr said, “Despite strong efficacy in the Phase 3 cUTI trial, Zerbaxa use may be hampered in this indication by the absence of an oral formulation. Pneumonia represents a potentially important long-term opportunity. A Phase 3 trial in this indication has been initiated. We believe the drug has up to $1B worldwide peak sales potential.”
The analyst added, “Our Hold rating is based on expectations for acquisition of Cubist by Merck at $102 per share.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Alan Carr has a total average return of 41.4% and a 68.0% success rate. Carr is ranked #9 out of 3423 analysts.