Jefferies Increases Sales Guidance on Cubist Pharmaceuticals

Jefferies published a report on Cubist Pharmaceuticals (NASDAQ: CBST) that increased fiscal year guidance.

In the research report, Jefferies wrote, "In 2Q11, U.S. Cubicin sales of $169M (~10% q/q) came in above our/cons estimates of $162M/$165M, respectively; slightly lower ex-U.S. Cubicin revenue of $7.7M (vs. our/cons estimates of $8.5M/$8.4M). Total revenue was $177M (vs. our/cons estimates of $171M/$175M). Higher-than-expected total OpEx of ~$200M (vs. our est of $120M) was due to an earlier-than-anticipated accounting recognition (contingent consideration) of ~$82M relating to CXA-201."

Jefferies rated Cubist Pharmaceuticals a BUY with a price target of $44.00. Cubist Pharmaceuticals closed at $35.93 Thursday.