Cubist Pharmaceuticals, Inc. (NASDAQ:CBST)

CAPS Rating: 4 out of 5

A biopharmaceutical company focused on the research, development and commercialization of pharmaceutical products that address unmet medical needs in the acute care environment.

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Member Avatar SmartAce (99.88) Submitted: 12/3/2014 4:22:26 PM : Outperform Start Price: $76.57 CBST Score: +30.73

I like the pipeline coupled with upcoming catalyst. Also, I predict that oversized calculators will make a strong comeback in the near future.

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Member Avatar muirmm (29.21) Submitted: 9/8/2014 2:42:57 PM : Outperform Start Price: $68.32 CBST Score: +43.08

The world is desperate for new antibiotics to replace the ones bacteria are becoming resistant to. Cubist has them.

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Member Avatar TerryHoodSr (58.93) Submitted: 7/29/2013 10:57:07 PM : Outperform Start Price: $69.81 CBST Score: +24.36

growth

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Member Avatar foolfully (65.64) Submitted: 11/21/2012 4:15:10 PM : Outperform Start Price: $39.69 CBST Score: +104.41

100

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Member Avatar zzlangerhans (99.84) Submitted: 6/29/2012 2:09:47 AM : Outperform Start Price: $39.20 CBST Score: +97.19

I like to green thumb Cubist on pullbacks, since their consistently strong Cubicin revenues provide substantial downside protection. The company also has a strong internal pipeline which has the potential to generate substantial positive catalysts in the near future. I wasn't impressed with the Adolor acquisition, but under new management Entereg is actually showing some signs of life.

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Member Avatar PharmaD (93.51) Submitted: 10/26/2011 11:18:24 PM : Outperform Start Price: $39.29 CBST Score: +92.46

Clear takeover target for big pharma

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Member Avatar PDTBiotech (90.54) Submitted: 5/27/2011 11:07:12 AM : Outperform Start Price: $37.78 CBST Score: +109.73

Comically simple speculation approach - buying the rumor, hoping to sell the news. I like Cubist a lot, but I'll hit the high points.

*Rumored offer by Shire is probably legit, and will stir up BD execs at many other companies to take a peek. Confusingly, the articles all say the private offer was $44.5/share, or $2B, but with just shy of 60M shares outstanding it seems like that would be more in the $2.7B range. Current cap is $2.28B. A takeunder seems very unlikely, although they could be backing out CBST's debt when they cite the $2B figure, but with a big chunk of assets on their balance sheet as well I'm guessing the $2B is off substantially.

*Cubicin offers a way to buy revenues over a stretch of time when many companies will have a gap due to the patent cliff (cubicin IP expires mid-2016).

*Lots of upside to this company, including a seasoned ID sales force, some interesting pipeline products, and profitability.

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Member Avatar jackjjr (83.49) Submitted: 3/10/2011 12:15:52 AM : Outperform Start Price: $24.53 CBST Score: +250.24

cubisin is the only effective antibiotic that fights MERSA which is a major problem in hospitals. Cubist holds the patent and will win a challenge soon against TEVA who is making a generic. Winning the suit will send cbst much higher for a long time. It will also be a takover target.

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Member Avatar gonelong (38.73) Submitted: 1/24/2011 3:27:26 PM : Outperform Start Price: $22.46 CBST Score: +285.40

MP(sp)

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Member Avatar wax (97.61) Submitted: 5/10/2010 4:58:33 AM : Outperform Start Price: $20.40 CBST Score: +312.21

We think the current $20.15 is a good entry point for this stock, as we noted over the weekend in a post on our blogsite.
http://waxink.blogspot.com/2010/05/cubist-pharmaceutical-acutely-aware.html

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Member Avatar timattox (98.05) Submitted: 4/24/2010 2:50:32 PM : Outperform Start Price: $22.70 CBST Score: +271.29

From my ValueGrowth screen

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Member Avatar kevinim89 (69.92) Submitted: 1/12/2010 5:01:37 PM : Outperform Start Price: $19.15 CBST Score: +341.37

good

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Member Avatar UBishops09 (60.53) Submitted: 8/6/2009 7:02:36 PM : Outperform Start Price: $20.05 CBST Score: +293.38

Inexpensive and managements expansion plans seem bullish.

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Member Avatar ddphillips05 (< 20) Submitted: 6/30/2009 6:03:09 PM : Outperform Start Price: $18.34 CBST Score: +321.29

A knock out drug with only a lawsuit stopping a buyout at a higher price

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Member Avatar bulryder (< 20) Submitted: 6/1/2009 7:30:09 AM : Outperform Start Price: $17.35 CBST Score: +353.91

Boomers are getting older ,generics are cheaper and Obama"s health plan.

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Member Avatar BIGJIMT (96.43) Submitted: 12/29/2008 7:16:50 AM : Outperform Start Price: $24.88 CBST Score: +160.72

Quality rises to the top. You get what you pay for.
End of 2009 should be at least 40-50% higher than today!

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Member Avatar greenbodhi (< 20) Submitted: 11/18/2008 10:34:57 PM : Outperform Start Price: $22.78 CBST Score: +192.14

Only one of a handful of pharma companies focused on developing treatments for infectious diseases.

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Member Avatar RudolphsChoice (66.26) Submitted: 6/5/2008 6:04:25 PM : Outperform Start Price: $18.90 CBST Score: +377.18

Here’s another pitch I wanted to write about a smaller drug manufacturer by the name of Cubist Pharmaceuticals. I predicted Vertex Pharmaceuticals would do well back early this year and they are up almost 50% since I recommended them back in January. Now onto Cubist Pharmaceuticals. They are a smaller company with one marketable drug and another important drug (DX-88, which they say has a market potential of $500 million) going through to its 2nd phase 2 testing. This prediction is based on a few things, mostly from management’s tendency to low-ball earnings (or just do really well when they thought they wouldn’t).

The company’s big drug is Cubicin, an antibiotic for fighting MRSA, which was once solely a hospital insulated disease. Now that it has leaked out of hospitals and into the environment (epidemic is the term used by doctors), there seems to be growing demand for the number 1 drug.

Last quarter the company reported EPS .31-basic and .26-diluted on 88.3 million in revenue. Now here comes the interesting analysis. The company said that they projected revenue for the this year at 380-395 million in the U.S. and about 6.5 million abroad (Year over year (total) revenue growth of 28.48-34.1%, which in itself is strange because from 06’-07’ (total) revenue growth was 51.3%). Anyhow, the company’s 1st quarter earnings accounted for 20.2 and 20.6% in 06’ and 07’ respectively. Now, in the 1st quarter of 08’, the company’s earnings account for 22.84% of this year’s projected earnings (It accounted for 12% more revenue than it has over the past 2 1st quarters). This might get confusing but stick with it…so year over year revenue growth for the 1st quarter only from 06’-07’ was 48.4% while 07’-08’ was 47.8%. This starts to show that the company could exceed earnings this year and that the 12% more revenue than expected for the 1st quarter is actually what the company should have been predicting.

Now, if we apply that 12% premium to the low end of the year end projection, we get revenues of 432 million, completely beating the company’s estimate as well as Wall Street’s (avg. of 400.37 million). This is further solidified by the fact that MSRA is becoming an epidemic and that demand will not slow down.

If you take our new number of 432 million in revenue and get the net income by using the company’s projected COGS, SG&A and other expenses…you get a net income of 81.3 million, a close to 100% increase in net income from FY07. Using the company’s 2% increase in shares outstanding year over year (for this year it should be around 56.81 million), we come to a full year basic EPS of $1.43. Multiply that by MSN’s analysts’ forward P/E estimate of 16.20 (which even seems on the low end)…you arrive at a year end price target of $23.17 for a 21.6% return from today’s closing price. Using the current P/E would give you a price target of $27 for a return of 41.7% [these numbers are on the low end and are the safest, but I believe in a price target of over $30] ...sounds like a good deal to me…I’m setting a 1 year outperform rating and will most likely invest 20 shares now at $19.05 and another $20 on any dip below $18.75-$18.50, especially going into earnings next month…hope this helps…

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Member Avatar narlinbeaty (< 20) Submitted: 5/17/2008 3:42:10 PM : Underperform Start Price: $18.75 CBST Score: -384.00

This company make a drung called Daptomyocin. The drug is affective against MRSA and is used internationally for skin infections and bactermia. In many ways ths drug is a heavy hitting antiboitic used has last line of defense in the hospital setting. The drug is last line because it is theorized that gram positive bacterium like MRSA should be able to evolve quickly to be 100% drug resistant.

Further this company continues to be late with deliveries to hosptials nationwide. That combined with several recent questionable buys of small biotech firms makes this stock a underpreform for the short term and potentially the long term.

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Member Avatar purplemusic (< 20) Submitted: 4/23/2008 5:23:32 PM : Outperform Start Price: $21.12 CBST Score: +317.64

Antibiodics and new forms of them will continually be needed, especially as MRSA infections mutate and spread fruther. At the forefront of this research and production, this company will do well.

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