Promising Superbug Remedies Make Cubist a Prime Takeover Target

Aug. 21, 2014

Massachusetts-based Cubist is preparing to introduce four new treatments by 2020 to combat bacterial infections that have become resistant to older therapies, placing a premium on the $4.8 billion drug developer.

Cubist’s blockbuster, Cubicin, was approved in 2006 as a daily injection to treat MRSA. Analysts now speculate that Cubist may receive takeover offers and could sell for about 50 percent more than its current price. Pfizer, J&J and Eli Lilly have been mentioned as big names that would benefit from the acquisition.

Many drug companies have seemingly abandoned antibiotics to focus on more profitable chronic illness treatments, but as traditional antibiotics become ineffective, there’s a growing unmet demand, making companies such a Cubist highly appealing.

Read the Bloomberg artlce