CBST Gets Global Rights to Antibiotic Candidate

Zacks

Cubist Pharmaceuticals, Inc. (CBST) recently inked a deal with Japanese company Astellas Pharma Inc. (ALPMY) to acquire the remaining rights of ceftolozane from the latter. Ceftolozane is the key component of Cubist Pharma's antibiotic candidate CXA-201 (ceftolozane/tazobactam).  

Following the new agreement, Cubist Pharma gained the rights to develop and market CXA-201 in certain Asia-Pacific and Middle East countries. Cubist Pharma now has global rights pertaining to CXA-201.

As per the terms of the new agreement, Cubist Pharma will make an upfront payment of $25 million to Astellas Pharma. Cubist Pharma intends to make the payment through its available cash balance.

CXA-201 was added to Cubist Pharma’s pipeline following its acquisition of Calixa Therapeutics, Inc. in 2009. CXA-201 is one of the most interesting candidates in Cubist Pharma’s pipeline. The candidate is undergoing phase III studies in the complicated intra-abdominal infections (cIAI) and complicated urinary tract infections (cUTI) indications.

Cubist Pharma expects to report top-line data from the studies in the second half of 2013. The company intends to seek US approval for both indications (cUTI and cIAI) within approximately 6 months of reporting top-line data from both the phase III studies.

Cubist Pharma also intends to evaluate CXA-201 in a phase III study for treating patients suffering from nosocomial pneumonia. The study is expected to commence in mid-2013.

The US Food and Drug Administration (:FDA) has already provided QIDP (qualified infectious disease product) status to CXA-201 for all the above indications. With the FDA granting CXA-201 QIDP status for the above indications, the antibiotic qualifies for multiple benefits including a 5-year extension of Hatch-Waxman exclusivity (on approval) and priority review.

Cubist Pharma, a biopharmaceutical company, carries a Zacks Rank #3 (Hold). Biopharma stocks such as Array Biopharma (ARRY) and Kythera Biopharmaceuticals, Inc. (KYTH) are comparatively well placed and carry a Zacks Rank #2 (Buy).

Read the Full Research Report on CBST

Read the Full Research Report on ALPMY

Read the Full Research Report on KYTH

Read the Full Research Report on ARRY

Zacks Investment Research



More From Zacks.com

Rates

View Comments (0)