912183--2/26/2010--CUBIST_PHARMACEUTICALS

related topics

{product, candidate, development}

{stock, price, operating}

{acquisition, growth, future}

{product, liability, claim}

{condition, economic, financial}

{loss, insurance, financial}

{regulation, government, change}

{provision, law, control}

{control, financial, internal}

{property, intellectual, protect}

{personnel, key, retain}

{tax, income, asset}

Risks Related to Our Business We depend heavily on the commercial success of CUBICIN. We may not be able to obtain, maintain or protect proprietary rights necessary for the development and commercialization of CUBICIN, particularly with respect to our litigation with Teva, or our drug candidates and research technologies. We are completely dependent on third parties to manufacture CUBICIN and other products that we are commercializing and developing. We face significant competition from other biotechnology and pharmaceutical companies and may face additional competition in the future, particularly with respect to CUBICIN, including from Teva, who is seeking to market a generic version of CUBICIN. We need to manage our growth and increased breadth of our activities effectively. Our long-term strategy is dependent upon our ability to attract and retain highly qualified personnel. Our long-term strategy is dependent upon successfully discovering, obtaining, developing and commercializing drug candidates. We have undertaken and may in the future undertake strategic acquisitions, and we may not realize the benefits of such acquisitions. The FDA and other competent authorities worldwide may change their approval requirements or policies for antibiotics, or apply interpretations to its requirements or policies, in a manner that could delay or prevent commercialization of our antibiotic product candidates or approval of any additional indications for CUBICIN that we may seek in the U.S. and other countries. We have collaborative and other similar types of relationships that expose us to a number of risks. The investment of our cash is subject to risks which could result in losses. We have incurred substantial losses in the past and may incur additional losses. We may require additional funds and we do not know if additional funds would be available to us at all, or on terms that we find acceptable, particularly given the strain in the financial and credit markets. Risks Related to Our Industry Patent litigation or other intellectual property proceedings relating to our products or processes could result in liability for damages or stop our development and commercialization efforts. Revenues generated by products we currently commercialize or may commercialize in the future depend on reimbursement from third-party payors. Our business and industry is highly regulated and scrutinized and our long-term strategy and success is dependent upon compliance with applicable regulations and maintaining our business integrity. The current credit and financial market conditions may exacerbate certain risks affecting our business. The way that we account for our operational and business activities is based on estimates and assumptions that may differ from actual results, and new accounting pronouncements or guidance may require us to change the way in which we account for our operational or business activities. We could incur substantial costs resulting from product liability claims relating to our pharmaceutical products. Risks Related to Ownership of Our Common Stock Our stock price may be volatile, and the value of our stock could decline. If our officers, directors and certain stockholders choose to act together, they would be able to influence our management and operations and might act in their best interests and not necessarily those of other stockholders. Several aspects of our corporate governance may discourage a third party from attempting to acquire us. Our business could be negatively affected as a result of the actions of activist shareholders.

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912183--2/26/2010--CUBIST_PHARMACEUTICALS_INC