Merck Secures Cidara Therapeutics in a $9.2 Billion Flu Drug Acquisition
Pharmaceutical titan, Merck & Co., has made headlines with its latest acquisition. The company has purchased the biotech firm, Cidara Therapeutics, in a deal worth approximately $9.2 billion in cash, at $221.50 per share. This figure is more than double Cidara’s closing price on the preceding Thursday. The acquisition, representing a 108.9% premium, is a strategic move to bolster Merck’s pipeline in anticipation of patent expirations for its flagship cancer drug, Keytruda.
The centerpiece of this acquisition is Cidara’s experimental flu prevention drug, CD388. This long-acting antiviral agent, currently undergoing Phase 3 trials, has demonstrated promising results. It has been shown to provide up to 76% protection from symptomatic influenza over a 24-week period in mid-stage studies. CD388 could potentially offer season-long protection for individuals at higher risk of flu complications, irrespective of their immune status, a significant departure from traditional vaccines.
CD388 has earned a breakthrough designation from the FDA, which could expedite its approval process. Merck’s CEO, Robert Davis, has expressed confidence in the drug’s potential, stating that “CD388 has the potential to be another important driver of growth through the next decade.” The transaction is expected to close in early 2026, aligning with Merck’s science-led business development strategy as it diversifies its portfolio.
Source: CNBC