Oppenheimer upgrades Cubist Pharma (CBST 16.82) to Perform from Underperform and maintains their $17 tgt, based on valuation yet continue to recognize the threat of a large and potentially dilutive in-licensing, which they believe would cause a negative near-term reaction. Firm views any meaningful upside will be limited by overhang that will remain until investors gain visibility into Cubicin patent litigation. Finally, they see a lack of meaningfully positive clinical or commercial catalysts until 1H10, the earliest.

**They need to get this TEVA thing worked out.