Merck announced on November 14, 2025 that it will acquire Cidara Therapeutics for $9.2 billion in cash, paying $221.50 per share—more than double the price Cidara’s shares traded at the close of the previous day. The transaction adds Cidara’s lead candidate, CD388, a long‑acting antiviral designed to prevent influenza in high‑risk populations, to Merck’s pipeline.
CD388 has earned FDA Breakthrough Therapy Designation and Fast Track Designation. In the Phase 2b NAVIGATE study, the 450 mg dose achieved 76 % efficacy in preventing symptomatic influenza, while the 300 mg and 150 mg doses achieved 61 % and 58 % efficacy, respectively. A Phase 3 ANCHOR trial is currently underway to confirm these results in a larger, more diverse population.
Merck’s acquisition strategy is driven by the need to diversify its revenue base ahead of the 2028 loss of exclusivity for its flagship immuno‑oncology drug Keytruda. By adding a first‑in‑class, strain‑agnostic influenza prevention agent, Merck expands its respiratory portfolio and positions itself to capture a new market that is currently dominated by vaccines with annual reformulation requirements.
Merck’s Q3 2025 financials provide context for the investment: sales rose 4 % year‑over‑year to $17.3 billion, GAAP net income reached $5.8 billion, and adjusted earnings per share were $2.58. The modest growth reflects continued strength in oncology and vaccine segments, while the company maintains disciplined cost management to support future acquisitions.
Cidara, which had not generated revenue in Q3 2025, reported $476 million in cash on hand, giving it the liquidity to pursue the development of CD388 and to support the acquisition. The company’s focus remains on advancing CD388 through regulatory milestones rather than generating immediate sales revenue.
Market analysts project that CD388 could reach peak sales of approximately $3.1 billion by 2040, reflecting the large global influenza burden and the potential for a single‑dose, long‑acting preventive therapy to capture a significant share of the market. The projected sales underscore the strategic value of the asset to Merck’s long‑term growth plan.
"We continue to execute our science‑led business development strategy, augmenting our pipeline with CD388, a potentially first‑in‑class, long‑acting antiviral designed to prevent influenza in individuals at higher risk of complications," said Robert M. Davis, Chairman and CEO of Merck. Dr. Dean Li, President of Merck Research Laboratories, added, "CD388 is a novel late‑phase candidate with important strain‑agnostic properties being evaluated for the prevention of symptomatic influenza in high‑risk individuals." Jeffrey Stein, Ph.D., President and CEO of Cidara Therapeutics, noted, "This milestone represents a transformational moment for Cidara and for our mission to redefine influenza prevention."
Merck expects the transaction to close in the first quarter of 2026, subject to regulatory approvals. The deal represents a significant investment in a late‑stage candidate that could generate new revenue streams and strengthen Merck’s pipeline diversification, supporting its long‑term growth plan.
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