Merck to acquire Cubist

Merck has reached a deal to Cubist Pharmaceuticals for US$8.4 billion ($9.7 billion).

“Cubist is a global leader in antibiotics and has built a strong portfolio of both marketed and late-stage pipeline medicines,” says Merck chairman and CEO Kenneth C. Frazier.

“Combining this expertise with Merck’s strong capabilities and global reach will enable us to create a stronger position in hospital acute care while addressing critical areas of unmet medical need, such as antibiotic resistance,” he adds.

Merck believes now is the time to significantly grow its hospital acute care presence because of the positive regulatory and reimbursement trends in the hospital setting and the increasingly important role that hospitals are expected to provide in healthcare overall.

The companies expect the transaction to close in the first quarter of 2015.

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