Pharma BD Deal Intelligence

Cubist Pharmaceuticals, Inc. / Optimer Pharmaceuticals, Inc.

2013 · Acquisition/Merger · $801M · Complete

WRONG BY 35 POINTS

Dificid was a logical bolt-on for Cubist's hospital-acute antibiotics franchise, but it never came close to blockbuster status — the deal's own contingent-value-right structure collapsed in value within six months, foreshadowing a decade of sub-$65M/year sales against an ~$0.8B price tag.

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The coverage arc

Jul 30, 2013 SEC EDGAR - Cubist Pharmaceuticals 8-K Exhibit 99.1 Bullish

Cubist CEO Michael Bonney: 'Optimer is a natural fit for Cubist given our co-promotion of DIFICID and focus on the acute care and hospital environments. The…

Jul 31, 2013 PharmaTimes Bullish

Cubist's tandem Optimer/Trius deals are framed as a deliberate consolidation of specialized hospital ID expertise — Dificid as 'the first antibacterial…

Aug 15, 2013 MM+M (Medical Marketing & Media) Neutral

Even with Dificid in hand, Cubist faces 'hurdles in diversifying beyond flagship drug' Cubicin — Dificid uptake constrained by formulary cost barriers despite…

Source summaries from our enrichment pipeline; follow links for originals.

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Cubist to acquire Optimer at $10.75/share + CVR up to $5/share (total up to $801M fully diluted); converted existing Dificid co-promote into outright ownership of CDAD franchise.

Did it work? Outcome assessment

Dificid was a logical bolt-on for Cubist's hospital-acute antibiotics franchise, but it never came close to blockbuster status — the deal's own contingent-value-right structure collapsed in value within six months, foreshadowing a decade of sub-$65M/year sales against an ~$0.8B price tag.

Strategic verdict
Partially Achieved
Financial impact
Neutral
Pipeline outcome
Assets Advanced

Key facts

Related deals — scored

DealYearValueOutcome
Cubist Pharmaceuticals, Inc. / Optimer Pharmaceuticals, Inc. (this deal)2013$801M45
Cubist Pharmaceuticals, Inc. / Calixa Therapeutics, Inc.2009$402M52
Cubist Pharmaceuticals, Inc. / Adolor Corporation2011$415M49
Cubist Pharmaceuticals, Inc. / Trius Therapeutics Inc.2013$707M44
Pfizer Inc. / BioNTech SE2020$748M100
Gilead Sciences Inc. / Pharmasset Inc.2011$11.2B98
Abbott Laboratories / Alere Inc.2016$5.8B95

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