BREAKING: Merck & Co. has just announced a monumental acquisition of Cidara Therapeutics for approximately $9.2 billion. This strategic move aims to enhance Merck’s antiviral pipeline, particularly with Cidara’s promising Phase III drug, CD388, designed to prevent influenza in high-risk individuals.
The Phase III ANCHOR trial, currently underway, evaluates CD388’s safety and efficacy among adults and adolescents susceptible to influenza complications. Early results from Cidara’s previous trials have shown significant prevention efficacy, with a remarkable 76.1% effectiveness rate in participants receiving the highest dose. This acquisition underscores Merck’s commitment to bolstering its portfolio as it faces challenges from expiring patents on blockbuster drugs.
Robert M. Davis, Merck’s chairman and CEO, expressed confidence in CD388’s potential to drive growth over the next decade, stating, “We intend to build on the Cidara team’s remarkable progress.” This acquisition aligns with Merck’s larger strategy to recover revenue lost from patent expirations on major drugs, including its top-seller Keytruda®, which has generated $23.3 billion in sales this year alone.
The deal comes just months after Cidara achieved positive results from its Phase IIb NAVIGATE trial, which confirmed CD388’s effectiveness in preventing symptomatic influenza in healthy adults aged 18-64. This promising outcome allowed Cidara to secure an award of up to $339.2 million from the Biomedical Advanced Research and Development Authority (BARDA), further validating the drug’s potential impact.
Dean Y. Li, president of Merck Research Laboratories, noted that this acquisition will not only expand Merck’s respiratory portfolio but also enhance its capabilities in addressing unmet needs in influenza prevention. The integration of Cidara’s innovative Cloudbreak® platform will allow Merck to develop targeted therapies that engage the immune system effectively.
Cidara’s shares skyrocketed by 105% following the announcement, closing at $217.71 on NASDAQ, while Merck’s shares remained stable at $92.93. Through a subsidiary, Merck plans to buy all outstanding shares of Cidara for $221.50 per share, marking a significant premium over Cidara’s previous closing price.
The boards of both companies have approved the transaction, expected to close by the first quarter of 2026, pending regulatory approvals. This acquisition represents a transformational moment for Cidara, aiming to redefine influenza prevention and address global health challenges.
As the pharmaceutical landscape evolves, all eyes will be on Merck’s integration of Cidara and the potential breakthroughs in influenza prevention that could emerge from this significant investment. Keep an eye on upcoming developments in the ANCHOR trial, as interim analysis is targeted for the first quarter of 2026, which may prompt further enrollment based on initial findings.
Stay tuned for more updates on this developing story as it unfolds.
