Merck announced the completion of its acquisition of Cidara Therapeutics, Inc. in a cash tender offer valued at $221.50 per share, with 85.96% of Cidara’s outstanding shares tendered. The transaction, worth approximately $9.2 billion, adds CD388—a long‑acting, strain‑agnostic antiviral candidate for influenza prevention—to Merck’s respiratory portfolio.
The deal represents a strategic pivot for Merck, which has been seeking to diversify beyond its oncology core in anticipation of the 2028 patent cliff for Keytruda. CD388’s first‑in‑class status, combined with FDA Breakthrough Therapy and Fast Track designations, positions Merck to capture a large, unmet market for influenza prevention and to generate new revenue streams in a high‑growth therapeutic area.
Merck’s 2026 research and development budget is projected at $11.4 billion. The $9 billion increase attributable to the Cidara acquisition represents a substantial portion of that spend, underscoring Merck’s confidence in CD388’s development trajectory and its commitment to expanding the company’s pipeline breadth.
Robert M. Davis, Merck’s Chairman and CEO, said the acquisition “strengthens and complements our expanding respiratory portfolio and exemplifies our science‑led business development strategy.” He added that CD388 “has the potential to be another important driver of growth through the next decade, creating real value for shareholders.”
The acquisition was welcomed by investors as a strategic fit, with analysts noting the alignment with Merck’s long‑term growth strategy and the potential upside of a first‑in‑class influenza prevention platform.
Merck will need to integrate Cidara’s operations and CD388 program, but the deal positions the company to capture a large influenza prevention market and diversify its revenue base ahead of Keytruda’s patent cliff.
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