Dec 8, 2014 7:26 AM
Merck buying Cubist Pharmaceuticals for $8.4B
The Associated Press
NEW YORK (AP) Merck is buying Cubist Pharmaceuticals for $8.4 billion, illustrating a new emphasis on combating so-called "superbugs" that are drawing dire warnings from global health organizations.
Cubist Pharmaceuticals Inc. does advanced antibiotic research.
The World Health organization warned in April that without a coordinated effort, "the world is headed for a post-antibiotic era, in which common infections and minor injuries which have been treatable for decades can once again kill."
To accelerate its entry into that market, Merck & Co. said Monday that it will pay $102 per share of Cubist, a 37 percent premium.
Merck expects the deal to add more than $1 billion of revenue to its 2015 base and it's expected to significantly add to profit in 2016 and beyond.
The transaction includes $1.1 billion in debt.