Merck To Buy Cidara In $9.2B Deal To Strengthen Antiviral Portfolio

• Under the deal, Merck will buy Cidara for $221.50 per share in cash through a unit.
• The purchase price represents a premium of about 109% from CDTX’s closing price on Thursday.

Merck (MRK) said on Friday that it has entered into a definitive agreement to acquire Cidara Therapeutics (CDTX) for about $9.2 billion.

Under the deal, Merck will buy Cidara for $221.50 per share in cash through a unit. The purchase price represents a premium of about 109% from CDTX’s closing price on Thursday. The transaction is expected to close in the first quarter of 2026, subject to the satisfaction of certain conditions.

What Does The Deal Bring For Merck?

The takeover marks Merck’s latest move to fortify its drug portfolio before Keytruda, its $25 billion-per-year cancer therapy, loses patent protection in 2028. The company agreed in July to buy respiratory drug developer Verona Pharma for $10 billion as part of a broader effort to maintain revenue momentum.

With the new deal, Merck would gain access to Cidara’s lead candidate CD388 designed to prevent influenza infection in individuals at higher risk of influenza complications. CD388 has been granted a breakthrough designation by the U.S. Food and Drug Administration, which could accelerate regulatory approval.

The treatment is currently being evaluated in a late-stage trial among both adult and adolescent participants who are at higher risk of developing complications from influenza. The trial is expected to enroll 6000 participants by December, the company said earlier this month.

“This acquisition expands and complements our respiratory portfolio and pipeline. Influenza continues to pose a significant global health threat, causing widespread illness, morbidity and death each year especially in older adults and immunocompromised individuals, such as those with cancer and chronic diseases,” said Dr. Dean Y. Li, President, Merck Research Laboratories.

The deal has been approved by the board of directors of both companies, Merck said.

How Did Stocktwits Users React?

CDTX shares jumped 105% in the premarket session at the time of writing, while MRK shares fell over 1%. On Stocktwits, retail sentiment around CDTX jumped from ‘bullish’ to ‘extremely bullish’ territory over the past 24 hours, while message volume rose from ‘normal’ to ‘extremely high’ levels.

CDTX stock has nearly quadrupled in value this year, while MRK shares have fallen 7%. 

Also See: AVXL Shares Slump Pre-Market After EMA Committee Fails To Recommend Approval For Alzheimer’s Drug

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