Industryweek 7872 Merckkgaa01
Industryweek 7872 Merckkgaa01
Industryweek 7872 Merckkgaa01
Industryweek 7872 Merckkgaa01
Industryweek 7872 Merckkgaa01

Merck to Buy Cubist Antibiotics for $9.5 Billion

Dec. 8, 2014
"Cubist is a global leader in antibiotics and has built a strong portfolio of both marketed and late-stage pipeline medicines," Merck  CEO Kenneth Frazier said. 

Merck (IW 500/31) announced Monday it was buying antibiotics maker Cubist Pharmaceuticals for about $9.5 billion.

The equity value of the deal stands at around $8.4 billion, with $1.1 billion in debt.

Cubist focuses on treating superbugs, bacteria resistant to currently available drugs, including antibiotics.

The Massachusetts-based company, founded in 1992, posted a little over $1 billion in revenue last year.

Cubist has several treatments to fight pneumonia and intestinal troubles currently undergoing Phase 3 testing, the last stage before getting approved to put it on the market.

"Cubist is a global leader in antibiotics and has built a strong portfolio of both marketed and late-stage pipeline medicines," Merck  CEO Kenneth Frazier said. 

"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."

Although the acquisition is significant, it should be absorbed easily by Merck, which has market capitalization of $175 billion.

Merck is buying Cubist for $102 per share in cash, a 35% premium compared to the company's stock price for the most recent five trading days.

Copyright Agence France-Presse, 2014

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!