Cubist Pharmaceuticals, Inc.
Ticker: CBST 24 Emily Street
Exchange: NASDAQ-National Market Cambridge, Massachusetts 02139
Industry: Manufacturing (617) 576-1999

Type of Shares:Common Shares Filing Date:6/25/96
U.S. Shares:2,500,000 Offer Date:10/25/96
Non-U.S. Shares:0 Filing Range:$11.00 - $13.00
Primary Shares:2,500,000 Offer Price:$6.00
Secondary Shares:0 Gross Spread:$0.42
Offering Amount: $30,000,000 Selling:$0.25
Expenses:$600,000 Reallowance:$0.10
Shares Out After:9,133,921

ManagerTierPhone
UBS Securities Inc.Lead Manager (212) 230-4000
Hambrecht & Quist IncorporatedCo-manager (415) 576-3423
Pacific Crest Securities Inc.Co-manager (503) 248-0721

Auditor: Coopers & Lybrand
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 6/30/96 6/30/95 6/30/96
Revenue:$1.27$2.05$0.10Assets:$10.36
Net Income:-$5.40-$2.07-$3.32Liabilities:$3.57
EPS:$0.93-$0.33Equity:$6.79

Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year,
unaudited figures are partial year

Business Description
The company is a biopharmaceutical company engaged in the research, development and commercialization of novel antiinfective drugs to treat infectious diseases caused by bacteria and fungi, primarily those resistant to existing antiinfective drugs. The increasing prevalence of drug-resistant bacterial and fungal pathogens has led to significantly higher mortality rates from infectious diseases and currently presents a serious crisis worldwide. Cubist's strategy for combating antiinfective drug resistance is to identify novel intracellular targets essential for cell function in bacteria and fungi, such as proteins, RNA or DNA, which if inhibited by a drug would kill or attenuate the growth of the pathogen. The company selects these targets based on a thorough understanding of their function, thereby providing a foundation for assay development and identification of leads for drug discovery. The company believes that its rational, target-based, drug discovery strategy represents a distinct departure from and offers significant advantages over traditional drug discovery strategies to counter resistance.

Use of Proceeds
The proceeds from the proposed offering will be used for research and development, working capital and other general corporate purposes.

Last updated: 11/24/96

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