One of the main concerns physicians have agreed upon in recent years has been the overuse of antibiotics by some health care professionals. Their overuse in some cases has led many of the major conditions and infections that require such treatment to become drug resistant. In other words, they aren’t working.

Because new drug development is expensive, and potent antibiotics can be reserved to ensure efficacy when needed and to mitigate development of resistance, many large pharmaceutical companies discontinued antibiotic development programs.

In a new research report, the Merrill Lynch biotechnology team focuses on the companies that have made antibiotic research and development their priority. Not only is this good for the patients that will need them, it may lead some large pharmaceutical companies to their door with an acquisition or merger offer.

Here are five companies that are leading the way for a new generation of antibiotics that are not drug resistant by infections.

Cubist Pharmaceuticals Inc. (NASDAQ: CBST) has used acquisitions to bolster its outstanding portfolio of antibiotic drugs over the years, and now it could be a target. The company also has four Phase 3 pipeline products in development, which could boost sales and earnings dramatically. If the Phase 3 trials for CXA-201 prove successful, many Wall Street analysts see a large potential upside from current valuation.

Cubist is also a stock that was believed to be a buyout target in recent years, but it decided to be an acquirer instead. The Merrill Lynch price target for this outstanding Buy-rated stock is $84. The Thomson/First Call target is set at $82.33. Cubist closed Thursday at $68.55 a share.

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Durata Therapeutics Inc. (NASDAQ: DRTX) is a pharmaceutical company focused on the development and commercialization of new therapeutics for patients with infectious diseases and acute illnesses. Its approved drug Dalvance is the first and only type IV antibiotic approved for the treatment of acute bacterial skin and skin structure infections (ABSSSI) with a two dose regimen of 1,000 mg followed one week later by 500 mg, each administered over 30 minutes.

Dalvance demonstrates bactericidal activity in vitro against a broad range of bacteria, such as Staphylococcus aureus (including methicillin-resistant strains) and Streptococcus pyogenes, as well as certain other streptococcal species. Durata is rated Buy at Merrill Lynch with a $22 price target. The consensus target is $21.56. The stock closed on Thursday at $16.73.

Insmed Inc. (NASDAQ: INSM) was a stock we recently profiled as a name that could double or more. On Wednesday, the company received breakthrough therapy designation for Arikace from the FDA. The designation was granted to Arikace for curing patients suffering from treatment resistant nontuberculous mycobacterial (NTM) lung infections. The stock was up a huge 41% and could be poised to go much higher.

Insmed now intends to discuss with the U.S. regulatory authority the future pathway of Arikace. The FDA’s decision was based on the findings from the Phase 2 study on Arikace in NTM patients. Merrill Lynch does not cover Insmed. However Leerink has a $33 price target and Piper Jaffray has an astonishing $51 price target. The consensus price target is posted at $33.40. Shares close Thursday at $17.78, and were trading up more than 5% in the premarket Friday.

Medicines Co. (NASDAQ: MDCO) recently announced the publication of the results from the SOLO I Phase 3 clinical trial of Orbactivtm (Oritavancin), an investigational intravenous antibiotic treatment for ABSSSI. An estimated 5.2 million patients in the United States and Western Europe are admitted to hospitals with ABSSSI annually.

Patients often receive intravenous therapies that require hospital admission and multiple-day dosing. The company is a leading biotechnology provider of solutions in three areas: serious infectious disease care, acute cardiovascular care and surgery and perioperative care. The stock is rated Buy at Merrill Lynch with a $36 price target, and the consensus target is $33.10. Shares ended trading Thursday at $28.03.

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Tetraphase Pharmaceuticals Inc. (NASDAQ: TTPH) recently announced that it has completed patient enrollment in the lead-in portion of its IGNITE 2 clinical trial. This two-part Phase 3 clinical trial is studying the safety and efficacy of intravenous (IV) and oral formulations of eravacycline for the treatment of complicated urinary tract infections. The lead-in portion of this trial was designed to inform the selection of an oral dose to take forward into the pivotal portion of the Phase 3 trial.

Tetraphase anticipates announcing top-line data in the third quarter of this year. Merrill Lynch does not cover the stock. The consensus price target is $19.13. Tetraphase closed Thursday at $12.99.

The companies taking the lead in this field can all be considered as takeover candidates. With major pharmaceutical not wanting to spend the research and development funds on new antibiotics, these specialty companies are picking up the slack in a huge field.

Most importantly, drug resistant infections are growing, and growing fast. The faster these companies can achieve efficacy and approval, the faster the potential acquisition deals may come.

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