• Acquirer: Merck & Co., Inc. (MRK)
• Target: Cidara Therapeutics, Inc. (CDTX)
• Deal Value: Nearly $9.2 billion
• Objective: Gain access to Cidara’s experimental antiviral drug CD388 for flu prevention.

Strategic Rationale

• Revenue Diversification: Merck aims to reduce dependence on Keytruda as patents on the blockbuster immunotherapy begin to expire later this decade.
• Pipeline Expansion: Since 2021, Merck has significantly expanded its late-stage pipeline via acquisitions:
  • Acceleron Pharma ($11.5B, 2021): Added pulmonary arterial hypertension drug Winrevair.
  • Verona Pharma ($10B, 2025): Added Ohtuvayre, approved for chronic obstructive pulmonary disease (COPD).

About Cidara and CD388

• CD388: A long-acting antiviral drug with potential as a single-dose, universal flu prevention targeting all flu strains.
• Significance: Complements Merck’s infectious disease portfolio, strengthening its presence in antiviral therapies.

This acquisition continues Merck’s strategy of bolstering its pipeline with innovative therapies to offset potential losses from expiring patents.