Cubist Pharmaceuticals Inc. (CBST) 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 after surgery.
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 (C. difficile-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 Optimer Pharmaceuticals (OPTR) to co-promote Optimer’s Dificid in the US for CDAD.
Cubist Pharma, a biopharmaceutical company, carries a Zacks Rank #3 (Hold). Biopharma stocks, which are presently well placed, include Array Biopharma (ARRY) and Medivation, Inc. (MDVN). Both stocks carry a Zacks Rank #2.
More From Zacks.com
- Investment & Company Information