March 30, 1999 RECOMMENDATION: BUY

Cubist Pharmaceuticals, Inc. (NASDAQ: CBST)

"The Future of Anti-Infectives; Initiating Coverage with a BUY Recommendation"

Market Data: Exchange Symbol.....................CBST (NASDAQ) Price of Common Stock (03/29/99)............$3.25 30-Day Average Trading Volume..........24,000 Shares Outstanding........................16.6 mm 52-Week High/Low......................$6.12/$1.62

Corporate Information: Address..............................24 Emily Street ................................Cambridge, MA 02139 Telephone...............................617-576-1999 President & CEO.................Scott Rocklage, Ph.D. CFO......................................Thomas Shea

Summary Investment Considerations

Cubist Pharmaceuticals is an emerging pharmaceutical company that we believe represents a promising investment opportunity based on its combination of late-stage drug development, and genomics and assay development technologies, all in the area of anti-infectives. CBST has just initiated the first of two Phase III trials, and an open-label Phase II trial, on its novel antibiotic daptomycin, which has been shown to be effective against all gram-positive organisms, including many of the antibiotic-resistant, so-called "Super Bugs"that are becoming increasing prevalent in our healthcare system today. CBST is also using proprietary technology it calls VITA, in partnership with major pharmaceutical companies, to identify new anti-infective targets and drug candidates. CBST recently announced a three-year collaboration with Novartis, in a deal worth up to $33 million based upon achievements of certain milestones.

CBST stock is trading at a significant discount to other drug development companies with promising products in Phase III clinical trials. Based upon the potential of daptomycin alone, without consideration of the considerable value in the VITA technology, CBST’s collaborative partnerships, and already identified anti-infective drug candidates, we believe CBST common stock to be significantly undervalued. We recommend purchase of CBST stock for investors tolerant of the risks associated with small-cap equity investments.

I.     Daptomycin & VITA --; Significantly Undervalued Assets

• Daptomycin: an intravenous (IV) antibiotic that uses a novel mechanism of action, is currently in one Phase III trial in the US for skin and soft tissue infections, and in an open-label Phase II trial for bacteremia; we believe daptomycin could be on the market by mid-2001 and could reach sales in the US of close to $200MM in the year 2003.
• VITA: A proprietary process incorporating genomics, bioinformatics and high-throughput screening, that should accelerate the time from target identification to new drug discovery. CBST has just teamed with Novartis on selected targets, assays and compounds, and intends to partner the technology with other companies as well.

II.     Strong Corporate Partnerships --; Actively Seeking Additional Collaborations

• Novartis: We believe this partnership to be strong validation of the VITA technology and the first of many partnerships pertaining to this technology.
• Bristol-Myers Squibb and Merck: CBST has ongoing collaborations with BMS and Merck for the discovery and development of anti-infective compounds against certain CBST targets.

III.     Compelling Valuation --; Daptomycin A Significant Low-Risk Opportunity

• CBST trades at a significant discount to peer companies with promising products in Phase III clinical trials; we have a 12-month price target of $9 to $12 per share.

 
Company Background, Strategy & Investment highlights

In November 1997, CBST acquired the worldwide rights to daptomycin from Eli Lilly. Daptomycin is a novel antibiotic that has shown efficacy against substantially all gram-positive bacteria, including the increasingly prevalent and problematic antibiotic-resistant strains --; the so-called "Super Bugs." For example, daptomycin has demonstrated activity against MRSA (methicillin-resistant Staphylococcus aureus), VRE (vancomycin resistant enterococci, both E. faecium and E. faecalis), PRSP (penicillin-resistant Streptococcus pneumoniae) and VISA (vancomycin intermediately susceptible Staphylococcus aureus). CBST has just begun the first of two Phase III trials of daptomycin for the treatment of complicated skin and soft tissue infection (SSTI), and an open-label Phase II trial for bacteremia. After lengthy discussions with management, and interviews with clinicians involved with the clinical trials of daptomycin, we are very optimistic on the prospects of daptomycin. Some commentary from clinician interviews that support our optimism about daptomycin include:

• Rapidly Bactericidal: Daptomycin has been shown to kill bacteria quickly. This is in contrast to many "last line of defense"antibiotics, which can take multiple days or weeks to kill the problematic gram-positive, and multi-resistant strains of bugs.
• Kills All Gram-Positive Bugs: While some antibiotics have been shown to be effective against certain gram-positive bacteria but not others, it appears that daptomycin is effective at killing all gram-positive bacteria. This could prove to be critical in its potential use in fighting infections empirically (i.e. use prior to identification of the specific cause of infection).
• Resistant Strains: It appears, from CBST studies, that it is very difficult to develop strains of organisms that are resistant to daptomycin. This may be of particular importance, as clinicians and regulatory agencies have become increasingly concerned about prophylactic use of antibiotics and their role in the development of antibiotic-resistant strains of bacteria.
• Safety Issues: In early Eli Lilly trials, daptomycin was shown to be efficacious in treating SSTI and bacteremia, but less so in treating endocarditis --; as there was observed muscle toxicity in certain patients at the dose levels used. CBST believes that it has overcome the muscle toxicity issues by changing the dosing regimen. As a result of interviews with clinicians that participated in the Lilly studies, and that will participate in the CBST studies, we feel comfortable that the new dosing regimens will result in either greatly reduced or no muscle toxicity issues (in any event, muscle toxicity is easily monitored, and 100% reversible, and should not out-weigh the potential benefits of this drug in the FDA approval process).

Regulatory Strategy: We believe CBST has chosen SSTI and bacteremia as its lead indications to get daptomycin to the market quickest. Unlike indications such as endocarditis, which could suffer from trial problems such as patient enrollment, compliance and follow-up, SSTI and bacteremia should be relatively straightforward with respect to trial management. We believe this is a prudent strategy, as it is the fastest approach to FDA approval. Once approved, we believe the "expanded"usage of daptomycin could be significant. For comparison purposes, certain of the Company’s independent market studies have shown that off-label use of vancomycin represents one-third to one-half of all revenues for that drug.

Investment Thesis: We believe daptomycin will be a winner for CBST and its shareholders, and that CBST is significantly undervalued based on the potential for daptomycin alone, without giving credit to its unique VITA technology, the value in its corporate partnerships (particularly its recently announced three-year alliance with Novartis), and the potential value in the numerous anti-infective candidates compounds already identified.

 
Background on Anti-Infectives Market --; Development of "Super Bugs"

Bacteria have a great survival capacity and inevitably mutate to resist the killing ability of antibiotics. For example, since penicillin’s introduction in the 1940s, resistant strains of bacteria have emerged against every class of antibiotic developed since. Until recently, simply modifying the structure of existing compounds was sufficient to overcome the developed resistance, and because of this, no novel class of antibiotic has been developed in over two decades. However, it appears that this technological strategy has been exhausted and the increasing need for antibiotics with novel mechanisms of action indicates a looming health crisis.

Although there are a number of factors likely contributing to the increased number of resistant bacteria strains, the most important appears to be the increased prophylactic use of antibiotics, particularly in hospitals, and the use of "broad spectrum"antibiotics before verification that an infection actually exists or before the type of infection has been identified (called empiric therapy). These practices have given rise to resistant strains of bacteria that confer their genetic mechanism of resistance to bacteria that are pathogenic.

Four bacteria, staphylococcus, enterococcus, pseudomonas aeruginosa and streptococcus pneumoniae, account for nearly half of in-hospital-acquired infections. A potential crisis is appearing on the horizon with staphylococcus, the most prevalent and virulent of those that require treatment in the hospital setting. Strains, accounting for 40-50% of hospital staph infections, have developed that are resistant to all but one antibiotic, vancomycin, a generic drug whose worldwide sales are over $400 million. Because it has been shown in the laboratory that staph can become resistant to vancomycin by borrowing the vancomycin-resistant genes from enterococcus, it is thought that it is only a matter of time before strains of staph will become untreatable.

The worldwide market for antibiotics is greater than $25 billion, making it the third largest pharmaceutical market. The hospital market is estimated to be close to $10 billion, or more than $2.5 billion in the US. By employing a three-pronged strategy–with a late-stage development product, a plan to license in or acquire mid-stage products, and its genomics technology to identify novel anti-infective targets and assays–we believe CBST has positioned itself to be a leader in the development of novel anti-infectives and to participate in this large and growing market.

 
Daptomycin --; A Novel Antibiotic with Significant Near-term Potential

In November 1997, CBST entered into a license agreement with Eli Lilly for exclusive worldwide rights to develop, manufacture and market daptomycin, an intravenous (IV) antibiotic that uses a novel mechanism of action and has demonstrated the unique ability to fight all gram-positive bacterial infections.

Prior to licensing, Eli Lilly had completed Phase I and II trials on daptomycin for the treatment of complicated skin and soft tissue infections (SSTI), bacteremia and endocarditis, or infection of the heart valves. While efficacy was not proven against endocarditis at dose levels that caused issues of mild, reversible muscle toxicity, the drug proved safe and effective against SSTI and bacteremia. Due to the relatively small size of the SSTI market and for several other reasons, daptomycin did not meet Lilly’s economic and strategic criteria for continued development, providing what we believe to be a great opportunity for CBST and its shareholders.

Daptomycin for Complicated Skin and Soft Tissue Infection: Following the FDA’s acceptance of an IND to enter Phase III trials, CBST recently began a pivotal trial in the US, and will commence a second in Europe shortly, using IV daptomycin for the treatment of complicated SSTI. Each trial will enroll 400 patients, 200 of whom will receive 4 mg/kg of daptomycin every 24 hours for up to 14 days, and 200 of whom will receive vancomycin, nafcillin or oxacillin, all current standards of care. The primary endpoint for the trials will be clinical outcome, or the disappearance of signs and symptoms, while the secondary endpoints will include the eradication of bacteria and the time to reduce temperature to normal levels (defervescence).

If all goes well, we are anticipating the Phase III trials to conclude in mid-2000, with an NDA filing by the beginning of 2001. As daptomycin has demonstrated efficacy against resistant strains of bacteria, we would expect the FDA to expedite the review of this product. We are therefore predicting final approval and market launch of daptomycin by mid-2001. As our model indicates, we estimate there to be approximately 500,000 cases of complicated SSTI in the US each year. Due to the fact that physicians appear to be satisfied with the current treatments for non-resistant infections, we are forecasting a slower penetration ramp-up on daptomycin for SSTI (in comparison to bacteremia). However, with the increasing incidence of resistant bacteria strains and the advantages of daptomycin’s once-a-day dosing, our estimates may prove to be conservative.

Daptomycin for Bacteremia: Concurrent with the FDA’s approval to begin its Phase III trials for SSTI, CBST received approval to begin an open-label Phase II trial on IV daptomycin to treat bacteremia not associated with endocarditis. Most simply put, bacteremia is the presence of bacteria in the bloodstream–clinical illness may or may not accompany the condition. Clinically detectable bacteremia is most often secondary to spillage into the blood of microorganisms from another site of infection and can also be related to conditions such as IV drug use, increasing age, organ transplantation, severe burns or diabetes mellitus. It is estimated that there are approximately 350,000 cases of bacteremia in the US annually.

The Phase II study for bacteremia will involve 240 patients and will examine three dosing regimens compared to a vancomycin-treatment arm. The primary endpoint will be bacteriological eradication, while secondary endpoints will focus on clinical outcome, 28-day mortality, time to sterilization of blood and time to defervescence. This study should finish by the end of 1999, and we would anticipate commencement of a single Phase III trial shortly thereafter. Due to the nature of the trial, we are expecting this Phase III trial to be completed soon after the Phase III trials on SSTI. It is CBST’s goal to file the NDAs concurrently, however, should there be more than a quarter difference in the finish dates of the trials, CBST management has indicated that they would file first for SSTI, and then follow-up with the bacteremia filing as a supplemental NDA.

Daptomycin for Other Indications: Although bacteremia is certainly the primary indication for daptomycin, CBST is also planning a Phase II trial in complicated urinary tract infection (UTI) and is expecting to conduct trials for the treatment of pneumonia, osteomyelitis, endocarditis and other serious life-threatening infections as well as infections involving resistant organisms. Other uses for daptomycin may include prophylaxis during surgery or dialysis, and use in long-term care facilities or in the home.

Marketing and Manufacturing Issues: We have built into our financial model costs associated with the development of a 40- to 60-person salesforce at CBST. As daptomycin will initially only be used in the hospital setting, we feel a salesforce of this size is sufficient to effectively market the product in the US. In addition, due to the increased focus on the need for novel antibiotics, it appears that hospital physicians are very aware of the progress being made on daptomycin.

With respect to international markets, CBST is actively seeking development and marketing partners for Europe and Japan, and we anticipate potential announcements in 1999 pertaining to such agreements. To be conservative, we have put milestones payments for such collaborations in year 2000 and beyond, and have footnoted our assumptions with respect to up-front payments and royalties.

In February 1998, CBST announced that it had signed an agreement with ACS DOBFAR SpA of Milan Italy, to manufacture and supply daptomycin for its Phase III trials. ACS DOBFAR is a GMP-qualified antibiotic producer that serves as a supplier to multiple top-tier multinational pharmaceutical companies.

Competitive Situation: Competition in the anti-infective market is intense. There are a number of drugs in development, or awaiting approval, that are positioned to compete head-on with daptomycin, if and when daptomycin is approved. We have reviewed competitive market studies commissioned by CBST, and spoken with clinicians about their experience with currently approved therapies, as well as new drugs currently in development. Potential new competition include drugs from Pharmacia & Upjohn (Linezolid), Rhone-Poulenc Rorer (Synercid) and Schering-Plough (Ziracin). Eli Lilly is developing a new antibiotic as well. We feel daptomycin’s greatest competitive advantage lies in its bactericidal activity, or its ability to kill bacteria, as opposed to these potential competitors that are merely bacteristatic, or able to inhibit the growth of bacteria. We remain convinced, based on this fact, as well as daptomycin’s broad spectrum and ability to kill resistant strains, that daptomycin should be able to compete well against the field of other drugs.

Conclusion on Daptomycin: As there is evidence that much of the current use of vancomycin is for off-label indications, we feel it probable that, when approved, daptomycin will be used by physicians for many more indications than the FDA has indicated. We have included off-label and expanded use sales in our financial model from the estimated time of first approval. Again, our estimates may prove to be conservative, due to the dosing advantages of daptomycin, its excellent safety profile, its efficacy against all gram-positive strains, its efficacy against resistant strains of bacteria and increased empiric use for severe infections. With a possible mid-2001 product launch for both bacteremia and SSTI, we are estimating US sales of daptomycin to reach $100 million in the year 2003 for these indications, with a possible additional $100 million in sales from off-label use.

 
VITA (Validation In Vivo of Targets/Assays for Anti-Infectives) --; Longer Term Potential

CBST has developed a proprietary technology it calls VITA, or the Validation In Vivo of Targets/Assays for Anti-Infectives, on which patents have been filed. Most simply, the VITA process combines CBST’s capabilities in genomics and bioinformatics (finding genes of both known and unknown function), with its expertise in the development of assays to be used in high-throughput screening (HTS), for the purpose of accelerating the time from target identification to new drug discovery.

Originally focused on a target class called the aminoacyl-tRNA synthetases, which are bacteria strain-specific enzymes necessary for bacterial survival, CBST has now expanded its range of new anti-infective targets. Once a target has been identified, the VITA process helps determine whether or not the target is essential to the survival of bacteria during an infection in an animal. By screening through libraries of peptides, CBST identifies peptides that can successfully bind to targets in vitro. CBST then use its proprietary pathogen and/or animal models to verify that interfering with the proper functioning of the target in question affects bacterial growth or allows for the survival of an infected animal. If the pathogen is destroyed or the animal survives, CBST has verified in vivo that the target is essential and therefore of interest to the Company. This in vivo analysis also performs "functional genomics", as it can elucidate the function of unknown targets by demonstrating by which mechanisms the targets are essential to pathogen survival.

With the valid target in hand, and having already identified a peptide that effectively binds to the target, CBST then has the components necessary for a HTS assay. The Company or its collaborators can then screen through CBST’s and other compound libraries on a high-throughput basis to identify potential orally available small-molecule drugs that act against a target. These drugs are then optimized chemically to identify candidates with the greatest potential for successful development.

The strength of this technology led to the recent announcement of a three-year collaboration with Novartis, a world leader in drug discovery (see discussion below). We believe this partnership to be strong validation of the VITA technology and hopefully the first of multiple partnerships involving this technology. With multiple targets already involved in validation and HTS, we believe CBST has a good chance of having several products on the market in the next 5 to 10 years. Although this should be of great long-term value to the company through royalty streams, in the near-term, we feel the uniqueness of the VITA technology should also add to CBST’s value through additional collaborations, up-front licensing fees, and payments to the Company as multiple milestones are reached.

 
Strong Corporate Partnerships

As part of its continued strategy to spread risk over multiple projects and to offset the high costs of drug research and development, CBST has entered into several partnerships with major pharmaceutical companies, and many collaborations with biotechnology and combinatorial chemistry companies.

Novartis: In February 1999, CBST announced a three-year research and licensing collaboration with Novartis of Basel, Switzerland. The agreement focuses on the use of CBST’s VITA technology and is designed to validate and develop assays for anti-infective targets and to identify new anti-infective compounds. Both companies will screen their compound libraries against the assays developed and Novartis will be responsible for optimization of and conducting preclinical and clinical trials on any promising compounds. Novartis made an initial $4.0 million equity investment in CBST and will provide annual research funding for the three years of the agreement. CBST will receive royalties on any sales of products emerging from the collaboration.

Bristol-Myers Squibb (BMS): CBST and BMS entered into a 3-year collaboration in June 1996 to discover and develop novel anti-infective drugs resulting from leads found during the screening of compounds from BMS’ libraries against six of CBST’s aminoacyl-tRNA synthetase targets. At that time, BMS purchased $4.0 million in preferred stock in CBST and agreed to make certain milestone and research payments to CBST. To date, BMS has made $4.3 million in payments to CBST. As a result of the collaboration, BMS is now evaluating lead compounds to take into preclinical studies. Should any products reach the market, CBST would receive royalties on the sales.

Merck: Also in June 1996, CBST entered into a very similar collaboration with Merck to discover and develop novel anti-infective compounds using CBST’s aminoacyl-tRNA synthetase targets and Merck’s compound libraries. Merck paid a $1.5 million up-front licensing fee to CBST and agreed to pay additional milestone and research payments to the Company. To date, Merck has provided $2.0 in funding to CBST.

Other Collaborations: To obtain access to diverse chemical compound libraries, CBST has entered into screening agreements with ArQule, Neurogen and Helios, through which CBST can screen the other companies’ compounds against CBST targets.

 
Management Team

Scott M. Rocklage, Ph.D. has been President and Chief Executive Officer and a member of the Board of Directors since July 1994. From 1990 to 1994, Dr. Rocklage served as President and Chief Executive Officer of Nycomed Salutar, Inc., a diagnostic imaging company. From 1992 to 1994, he also served as President, Chief Executive Officer and Chairman of Nycomed Interventional, Inc., a medical device company. From 1986 to 1990, he served in various positions at Salutar, Inc., and was responsible for designing and implementing research and development programs that resulted in three drug products in human clinical trials, including the approved drugs Omniscan and Teslascan. Dr. Rocklage received his B.S. in Chemistry from the University of California, Berkeley and his Ph.D. in Chemistry from the Massachusetts Institute of Technology.

Francis P. Tally, M.D. is Executive Vice President, Scientific Affairs. From 1986 to 1995, he was Executive Director of Infectious Disease, Molecular Biology and Natural Products Research at the Lederle Laboratories of American Cyanamid/American Home Products. While there, he was responsible for worldwide clinical studies for piperacillin/tazobactam which was registered for sales in Europe in 1992, approved by the FDA in 1993 and marketed as Zosyn. From 1975 to 1986, he was Senior Physician in Infectious Disease at the New England Medical Center and Associate Professor of Medicine at Tufts Medical Center. Dr. Tally received his A.B. in Biology from Providence College and his M.D. from George Washington University School of Medicine.

Thomas Shea is Vice President Finance and Administration, and the Chief Financial Officer. From June 1996 until December 1998, Mr. Shea was Treasurer and Chief Accounting Officer. From December 1997 until December 1998 he held the additional title of Senior Director of Finance and Administration and had been Director of Finance and Administration since September 1993. From 1987 to 1993, he served as Manager of Accounting/MIS and Budget and Financial Analyst at ImmuLogic Pharmaceutical Corporation. Mr. Shea received his B.S. in Accounting/Law from Babson College and his Masters in Business Administration from Suffolk University.

Dennis D. Keith, Ph.D. has been Vice President, Drug Discovery since October 1997. Dr. Keith joined Cubist from Hoffman-La Roche, Inc. where he held various positions from 1971 to 1997, the most recent of which was Director of Anti-infective Chemistry. Dr. Keith received his B.S. in Chemistry from Bates College and his Ph.D. in Organic Chemistry from Yale University.

Frederick D. Oleson, D.Sc. has been Vice President, Drug Development since November 1997. Prior to joining Cubist, Dr. Olsen was an independent consultant from June 1997 to November 1997; Director of Preclinical Research at AutoImmune, Inc. a biotechnology company, from January 1997 to June 1997; Director, Toxicology and Preclinical Pharmacology at Biogen, Inc. a biotechnology company, from 1992 to 1997 and in various positions at Bristol-Myers Squibb from 1983 to 1992. Dr. Olsen was a key contributor in the development of the Biogen drug Avonex and a key consultant in the development of Hirulog for The Medicines Company. Dr. Oleson received his B.S. in Biochemistry from Princeton University and a Doctor of Science in Physiology/Radiation Biology from Harvard University School of Public Health.

 
Financial Information and Valuation Discussion

With the guidance of management, and based upon review of the market opportunities for daptomycin, we have generated an earnings model for CBST out to the year 2004. We have provided information pertaining to the targeted indications for daptomycin, and believe our assumptions (as to market size, growth, penetration and pricing) are sufficiently conservative. We have made an assumption on the potential off-label use for daptomycin, based upon the considerable off-label use of vancomycin, and feel that we are also erring on the side of conservatism in this case.

With respect to collaborative arrangements, we have planned for another new partner (similar to Novartis) in the VITA technology. We have put the initial milestone payments in the year 2000, despite management’s belief that another partnership arrangement could occur in 1999. We have also made assumptions with respect to international partners for daptomycin, both in Japan and in Europe. Again, we believe we have been sufficiently conservative with respect to the timing of those agreements, and the potential economic impact therefrom.

On earlier collaborative agreements, we have assumed that Merck will not continue their collaborative efforts after mid-year 1999, but that Bristol Myers Squibb will enter into a new arrangement. Quite frankly, although discontinuation of a collaborative agreement is always perceived as a negative in the market, we do not feel the fundamental attractiveness and investment case for CBST is predicated on either of these two collaborations.

Valuation: From our assumption page, we generated a six-year income statement forecast. From these data, we generated valuation analyses using a discounted cash flow method, a terminal P/E multiple method and a terminal EBITDA multiple method. We believe we have been sufficiently (if not excessively) punitive in our discount rates, and are comfortable with the range of multiples being used. Regardless of the valuation methodology, CBST’s share price appears to be significantly undervalued at its current level. We believe that daptomycin alone, without consideration for any of CBST’s other technologies, partnerships and drug candidates, is worth a multiple of what the stock is trading at currently. We believe fair value could be in excess of $15 per share, and an appropriate 12-month price target of $9 to $12 to be achievable.

Earnings Model and Valuation Analyses: See Below

Summary Balance Sheet ($000s) --; FY Ends December 31
Cash, equivalents & investments A/R Total Assets Long term debt Shareholders’ equity	12/31/97A $18,116 53 21,673 1,105 19,063	12/31/98A $19,012 0 23,137 1,308 20,086

 
Risk Considerations

This section of the document is provided to remind potential investors to undertake a prudent level of due diligence prior to making an investment in the securities of Cubist Pharmaceuticals. For a complete description of risks and uncertainties to CBST’s business, see the "Risk Factors"section in CBST’s SEC filings, which can be accessed directly from the SEC Edgar filings at www.SEC.gov on the internet. Other potential risks include:

• Market risk: Investors should consider technical risks common to many small-cap or micro-cap stock investments, including liquidity levels, small float, risk of dilution, dependence upon key personnel, dependence upon single products or technologies, and the strength of competitors that may be larger, better capitalized and hold dominant market positions.
• Business risk: CBST has limited experience in the manufacturing, marketing, and the distribution of pharmaceutical products. Many of its products are in the early stages of development. Additionally, CBST intends to license rights to its products to other companies. There can be no assurance that these licensing agreements will be completed, or that the market will accept any products under development.
• Regulatory risk: There is no guarantee that CBST’s products will be approved by the US FDA or international regulatory bodies for marketing in the US or abroad.
• Competitive risk: The pharmaceutical industry and the anti-infective market is extremely competitive, in particular because of its large market potential. Many companies are developing products for markets that are targeted by CBST.

 
Sources for Additional Information

The following are website addresses offering related information, and links to other sources of information.

www.Cubist.com Cubist’s corporate website

www.SmallCapsOnline.com SmallCaps Online’s site for company information and research

www.FDA.gov US Food and Drug Administration homepage

www.WHO.int World Health Organization homepage

www.SEC.gov US Securities and Exchange Commission, with links to EDGAR filings

www.microbiol.org Microbiology Network

resistanceweb.mfhs.edu/cit/Index.asp Bacterial Resistant Trends

www.lsumc.edu/campus/micr/mirror/public_gtml/microbio.html Guide to Microbiology on the Net

The information in this report has been obtained from sources that we believe to be reliable, but we do not guarantee its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation by SmallCaps Online LLC for the purchase or sale of any securities. SmallCaps Online LLC has performed investment banking, consulting or other services for or may solicit investment banking, consulting or other business from, Cubist Pharmaceuticals. SmallCaps Online LLC or persons associated with SmallCaps Online LLC may at anytime be long or short any of the securities referred to herein and may make purchases or sales thereof while this report is in circulation or posted on the SmallCaps Online LLC website at www.SmallCapsOnline.com . This material, or any portion thereof, may not be reproduced without prior permission from SmallCaps Online LLC. SmallCaps Online LLC is not responsible for the contents of this document that is intended for electronic transmission and could be thus subjected to tampering or alteration. Copyright © 1999 by SmallCaps Online LLC. All rights reserved.