Merck announced a $9.2 billion cash acquisition of Cidara Therapeutics, offering $221.50 per share—more than double Cidara’s closing price of $105.99 the day before. The transaction is expected to close in the first quarter of 2026, subject to regulatory approval.
The deal brings Cidara’s lead candidate, CD388, a long‑acting, strain‑agnostic antiviral for influenza prevention, into Merck’s respiratory portfolio. CD388 achieved 76 % protection against symptomatic influenza in the Phase 2b NAVIGATE study at the 450 mg dose and received FDA Breakthrough Therapy designation on October 9 2025.
Merck’s rationale centers on diversifying its revenue base ahead of Keytruda’s patent expiry around 2028. Keytruda accounts for a large share of Merck’s earnings; the acquisition adds a high‑potential asset that could generate a $3.8 billion market opportunity and fill a gap in high‑risk populations that current vaccines and antivirals inadequately protect.
Management emphasized the strategic fit. CEO Robert M. Davis said the acquisition “augments our pipeline with a first‑class antiviral that could become a new growth engine.” Chief Scientific Officer Dr. Dean Y. Li highlighted CD388’s strain‑agnostic mechanism and its ability to protect immunocompromised patients. Cidara CEO Jeffrey Stein noted that Merck’s global capabilities will accelerate CD388’s development and commercialization.
The premium paid—$221.50 per share versus $105.99 the day before—reflects Merck’s urgency to secure pipeline assets and the high valuation of CD388’s unique technology. The acquisition aligns with Merck’s “One Pipeline” strategy, which has already seen a $10 billion purchase of Verona Pharma and an $11.5 billion acquisition of Acceleron.
Investors responded positively, reflecting confidence in the strategic fit and the potential of CD388 to address unmet needs in influenza prevention.
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