Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Cubist Pharmaceuticals (Nasdaq: CBST) popped as much as 17% in intraday trading today after announcing a licensing agreement and the settlement of a patent dispute.

So what: Cubist granted Teva Pharmaceutical Industries (Nasdaq: TEVA) a license to sell a generic version of its Cubicin antibiotic. Cubincin is Cubist's only approved product, so an unfavorable resolution to the patent dispute between the two companies could have had severe negative consequences.

Now what: Teva's sales of the generic version of Cubicin are not slated to begin until December 2017 at the earliest, so investors should not anticipate near-term revenues from the deal. That said, Cubist's CEO noted that the settlement would better allow the company to work with others to develop its business and "eliminated uncertainty." According to analysts, the settlement clears the way for a potential buyout of Cubist by a large drugmaker.

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