CDTX

Merck agreed to acquire Cidara for $221.50 per share in cash, a transaction valued at approximately $9.2 billion. This substantial premium over Cidara's previous market capitalization of approximately $3.3 billion represents a significant investment in Cidara's innovative drug candidate, CD388.

The acquisition is centered around CD388, a long-acting antiviral drug for influenza prevention that has shown 76% efficacy in clinical trials. Merck's focus on CD388 aligns with its strategy to diversify beyond its flagship drug, where patent challenges lie ahead.

The market reacted positively to the news of the acquisition, with Cidara's stock surging more than 100% on the day of the announcement. This surge reflects investor confidence in the future prospects of CD388 and its potential to generate significant revenue for Merck.

CD388 has received a breakthrough therapy designation from the FDA, which accelerates its development and regulatory review process. This designation validates CD388's potential to address unmet medical needs in influenza prevention.