Bank of America Merrill Lynch Maintains Neutral on Cubist Pharmaceuticals

Bank of America Merrill Lynch is out with its report today on Cubist Pharmaceuticals CBST, maintaining Neutral. In a note to clients, Bank of America Merrill Lynch writes, "We rate CBST shares Neutral and believe the stock is mostly fairly valued. A major overhang was recently lifted when Cubist settled its Cubicin patent infringement case with Teva, ensuring a meaningful revenue stream from Cubicin sales for the next several years. The company has a promising early stage pipeline though development costs are high. The recent marketing agreement with Optimer for fidaxomicin could add upside to Cubicin sales while educating the company on the C. diff market." Bank of America Merrill Lynch maintains a $40 PO on CBST. Shares of CBST closed $35.93, down 1.13% from Wednesday's close.