CBSTZ: New developments for Cubist CVR

A quick update on CBSTZ the Cubist CVR. Today Cubist filed an 8-K notifying CVR holders that it intends to purchase all the CVRs at $0.059225 on February 2, 2015. This is known as a “Failure Purchase Notice”. Below is a link to the 8-K: This outcome is listed as a possibility in the […]

CBST – An Outlook

Cubist management gave a five-year outlook at their Investor Day presentation on June 11; it was quite impressive. The most notable point was management’s projection of $2 billion in global revenue by the end of 2017- more than double expected 2012 sales. Moreover, Cubist aims to increase non-GAAP operating income to $700 million. Achieving the […]

CBST – 2011 Q4 Quarterly Report Follow-up; Catalysts Through 2012 and Beyond

CBST: 2011 Q4 Quarterly Report Follow-up; Catalysts Through 2012 and Beyond Thursday, January 19 Cubist announced fourth quarter and full-year 2011 results today that surpassed analyst expectations. Excluding one-time costs, quarterly earnings jumped to 66 cents/share from 24 cents the previous year. This was well above consensus estimates of 31 cents. Profit decreased to 11 […]

CBST – Initiating Coverage

CBST: Initiating Coverage Overview: Cubist is a small commercial stage biotech focused on the development of acute care products. Its revenues are almost entirely derived from the antibiotic Cubicin, used for skin and skin-structure infections. The drug has been one of the most successful recent antibiotic launches, allowing Cubist to focus on building up its […]

May 27 Biotech Update

Yesterday was not a great day but after the run having a treading water sort of trading is not the worst outcome. At the worst, we were trading in line with the market and the key will be what we do after the recent move has been digested. The trend has been higher, so the […]

December 12 Biotech Update

The market is weak to open as a follow through on the selling yesterday. This feels like a reversal day but it is way too early to tell but either way I think we are going to get a sense of how stocks are going to trade into the end of the year. A day […]

December 10 Biotech Update

It was a slightly negative open to the market but certainly more benign than yesterday where the market was able to come back. It may be the case that we are in a Europe driven pattern where there is selling pressure when the European markets are open but that drag is lifted once they close […]

December 9 Biotech Update

The market is pretty crappy to start this morning but let us see if the trend reverses. We have had a lot gap higher opens and then weakness the rest of the day, so perhaps this is a gap down and then strengthen sort of day. I do not think that is going to be […]

December 8 Biotech Update

It has been a busy couple of days as expected and more news than can be adequately covered in one day, so today I will touch on what seems most interesting and/or near term actionable. Even then I will necessarily be leaving some important topics for later in the week so feel free to contact […]

October 24 Biotech Update

It was a neutral open for the market which is pretty positive given the selling related to the Ebola case in NYC. It is very positive to see the market shrug off the news as it now seems that the Ebola panic and fear is decreasing. I read that there are probably up to 8-10 […]

October 22 Biotech Update

After a couple days of ripping higher the markets seemed to have calmed a little, which is understandable as this rip higher needs to be digested. The small caps tended to underperform the past couple days but it still might be a little too early to call it a trend and it could just be […]

October 6 Biotech Update

The market is OK this morning with biotechs not the strongest sector. That is not completely unexpected given the 60 Minutes story on cancer drug pricing. As such you would expect a little bit of weakness early but I am curious as to see if this is simply reflex selling or something more sustained. 1. […]

July 28 Biotech Update

Earnings season is off to a good start with both a nice quarter from BIIB and the positive phase III data from PBYI. It is encouraging that good news is being rewarded but the key is going to be how well this spike maintains over the next days and weeks. Given the positive pin action […]

April 30 Biotech Update

It is not Tuesday so the selling continues. It seems like the turnaround Tuesdays happen but have no sticking power. At some point that trend will change and that should be an important tell. Whether that happens today or in a couple of months is not clear at this time but as long as the […]