Legg Mason upgrades anti-infective drug manufacturer Cubist Pharmaceuticals (CBST) to buy from hold.
Analyst Christopher Holterhoff says there is a very strong likelihood Cubicin will achieve label expansion to include both endocarditis and bacteremia indications.
He believes label expansion will lead to an uptick in Cubicin scripts over the course of 2006 and 2007. As a result, he raises his $171 million 2006 Cubicin sales estimate to $186 million, and his $222 million 2007 estimates to $233 million.
Holterhoff expects the company to file sNDA by year-end with a potential approval for label expansion coming in 2006. Also, he expects the company to present a detailed analysis of these Phase results at conference in fall of this year. He has a $16 target.