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CBST CVR (CBSTZ) At A Discount?

|Includes: Merck & Co Inc. (MRK)

CBSTZ had an early Black Friday sale when they filed a K on Tuesday Nov 26 revealing:

Item 8.01 Other Events.

Net product sales of DIFICID ® (fidaxomicin) in the U.S. and Canada by Optimer Pharmaceuticals, Inc., or Optimer, were $15.5 million for the quarter ended September 30, 2013, and were negatively impacted by a $1.6 million adjustment to revenue reserves recorded during the period due to higher returns of DIFICID than estimated since its launch in July 2011. Optimer became a wholly owned subsidiary of the registrant, Cubist Pharmaceuticals, Inc., as a result of the registrant completing its acquisition of Optimer on October 24, 2013.

Link here

It appears that the slower sales have some holders increasing the discount % to payout to account for the slow Quarter.

Considering that the CBST sales force has not had a chance to sell the drug yet a discount seems premature and an opportunity to explore buying into the CVR.

Keep in mind year-end tax selling as a great deal of price action was around 2$ and in a big cap-gains tax year any loss available on 12/31 makes this a candidate, esp if you think lower sales impact future payments.

DYODD. CVR info avail from CBST IR pages. AT