Merck is expanding its drug development pipeline with the acquisition of Cidara Therapeutics for about US$9.2 billion (A$14.2 billion).
The American pharmaceuticals giant said it would pay $221.50 per share in cash for the biotechnology company, which is developing influenza drug CD388.
Merck Chairman and Chief Executive Officer Robert M. Davis said the company continued to execute its science-led business development strategy by augmenting its pipeline with CD388.
CD388 is an investigational long-acting, strain-agnostic antiviral agent undergoing Phase 3 trials and designed to prevent influenza infection in individuals at higher risk of complications.
“We intend to build on the Cidara team’s remarkable progress and are confident that CD388 has the potential to be another important driver of growth through the next decade, creating real value for shareholders,” Davis said in a news release.
Merck has bolstered its late-stage pipeline since 2021, ahead of the loss later this decade of patents for cancer drug Keytruda, developing drugs in-house and making large deals.
They include the $11.5 billion purchase of Acceleron to acquire pulmonary arterial hypertension drug Winrevair and the $10 billion buyout of UK-based Verona Pharma, which is developing Ohtuvayre, a newly approved drug for "smoker's lung".
CD388 is being evaluated in a Phase 3 ANCHOR study among adult and adolescent participants who are at higher risk of developing complications from influenza.
Supported by results from the Phase 2b NAVIGATE study, the U.S. Food and Drug Administration (FDA) granted CD388 Breakthrough Therapy Designation.
Merck shares (NYSE: MRK) shares closed one cent lower at $92.92 on Friday (Saturday AEDT), implying a market capitalisation of $230.63 billion.
Cidara shares (NASDAQ: CDTX) more than doubled in response to the announcement, ending $111.72 (105.41%) higher at $217.71 billion.
