Merck’s $9.2B Acquisition of Cidara Therapeutics Sends Biotech Stock Soaring
Merck & Co. has agreed to acquire Cidara Therapeutics in a $9.2 billion all-cash deal, sending the biopharmaceutical firm's stock price soaring by over 109%. The transaction values Cidara at $221.50 per share, more than double its previous closing price.
The acquisition grants Merck access to CD388, Cidara's experimental influenza treatment currently in Phase 3 trials. The therapy uses human antibody fragments to combat both influenza A and B strains, targeting high-risk adolescent and adult populations.
This deal exemplifies the premium large pharmaceutical companies are willing to pay for promising clinical-stage assets. While such acquisitions can deliver windfalls for biotech investors, they also carry significant risk should developmental therapies fail to reach commercialization.
