This Biotech’s Stock Price More Than Doubled on Friday. Here’s Why.
Key Takeaways
- Merck agreed to pay $9.2 billion to purchase Cidara Therapeutics, looking to cash in on the firm’s experimental flu treatment.
- The $221.50 per share offer is more than twice Cidara’s closing price yesterday.
Shares of Cidara Therapeutics (CDTX) more than doubled Friday after Merck (MRK) agreed to buy the biopharmaceutical firm in an all-cash deal worth $9.2 billion to expand its reach in antiviral treatments.
Merck said it would pay Cidara investors $221.50 per share, a whopping 109% premium to yesterday’s closing price.
The acquisition gives Merck access to Cidara’s top drug candidate, CD388, which uses a fragment of a human antibody to fight influenza A and B. It’s currently in a Phase 3 trial with…
