Merck announced on Friday its intention to acquire Cidara Therapeutics, a company focused on developing an experimental flu therapy, in a significant $9.2 billion deal. This strategic move comes as Merck seeks to enhance its product pipeline in anticipation of a revenue decline following the impending patent expiration of its blockbuster drug, Keytruda.
The acquisition involves a cash payment of $221.50 per share, which represents a substantial premium over Cidara’s closing price of $105.99 the previous day. Following reports of the impending deal, Cidara’s stock experienced a notable surge in pre-market trading, reflecting investor optimism about the transaction.
Cidara is advancing a treatment aimed at providing flu protection for individuals who may not respond adequately to traditional vaccines, such as the elderly and immunocompromised patients. Additionally, the company is exploring early-stage cancer therapies, further diversifying Merck’s therapeutic offerings and reinforcing its commitment to addressing unmet medical needs.
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