Cubist to Purchase 2 Percent Reduction in Cubicin Royalty Rate From Lilly

Cubist Pharmaceuticals entered into definitive agreements to purchase from Eli Lilly and company a 2 percent reduction in the royalties payable to Lilly on net sales of Cubicin (daptomycin for injection). Cubist acquired worldwide development and commercialization rights to daptomycin from Lilly in 1997. Upon the closing of the transaction, Cubist will issue to Lilly $20 million in Cubist common stock with associated registration rights.

PharmaBiz (http://www.pharmabiz.com/article/detnews.asp?articleid=26507§ionid=)