Cubist Pharma Downgraded To 'Neutral' At Baird

NEW YORK (AP) — An analyst for Robert W. Baird and Co. downgraded shares of Cubist Pharmaceuticals Inc. to "Neutral" from "Outperform" on Wednesday, predicting weaker sales growth for the company's anti-infection drug Cubicin.

Analyst Thomas Russo said growth in Cubicin sales has stalled, which could cause the company to miss Wall Street expectations. He suggested that hospitals may be using a cheaper alternative to Cubicin, generic vancomycin, to fight powerful infections.

Russo lowered his profit forecasts for 2009 and 2010 and cut his share price target to $21 from $27.

Cubist stock could rise if the company is able to successfully resolve a dispute with generic drugmaker Teva Pharmaceutical Industries Ltd., which is challenging the patents supporting Cubicin, Russo said. However, that may not take place until early 2011, Russo said.

Russo added positive trial data from the drug candidate ecallantide, which is intended to reduce blood loss during surgery, could also help the stock.

In afternoon trading, Cubist shares lost 27 cents to $19.14.