Merck Pays Big To Expand Into Acute Care With Cubist Acquisition (Updated)

Merck agreed to pay $9.5 billion to acquire Cubist, gaining a portfolio of antibiotics for hard-to-treat infections as part of a broader strategy to expand in the acute care setting.

Merck & Co. Inc.’s $9.5 billion acquisition of Cubist Pharmaceuticals Inc. will extend the big pharma further into acute care with a portfolio of antibiotics marketed through the hospital setting. Merck and Cubist announced they reached a merger agreement Dec. 8, with Merck agreeing to pay $8.4 billion in cash and pick up $1.1 billion in net debt.

Merck will acquire Cubist for $102 per share in cash, a 35% premium to Cubist’s average stock price for the most recent five trading days

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