Merck nearing deal to buy flu drug maker Cidara Therapeutics- FT
Investing.com-- Merck & Company Inc (NYSE:MRK) is close to a deal to buy flu treatment maker Cidara Therapeutics Inc (NASDAQ:CDTX) after pulling ahead of rivals in a bidding war for the firm, the Financial Times reported on Thursday, citing people familiar with the matter.
Cidara is likely to be valued at a premium to its $3.3 billion market capitalization, with a deal to be announced as soon as Friday, the FT reported. Merck may also be still competing with another pharmaceutical company for a takeover, and an exact value for the deal was not immediately clear.
Cidara shares rallied nearly 39% in aftermarket trade following the report. Merck fell 1.6%.
The deal comes as Merck seeks to offset the potential loss of revenue from its cancer drug Keytruda, which will come off patent by 2028. The company in July agreed to purchase biotech Verona Pharma for $10 billion.
Merck’s deal also comes amid heightened dealmaking activity in the pharma sector, as several companies race to snatch up promising drug candidates. Earlier this month, Pfizer Inc (NYSE:PFE) and Novo Nordisk A/S (NYSE:NVO) entered a bitter bidding war over weight-loss drugmaker Metsera Inc (NASDAQ:MTSR), with Pfizer eventually coming out on top with a $10 billion deal.
