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Merck takes aim at superbugs, to buy Cubist in $9.5 bln deal
December 8, 2014 / 12:11 PM / 3 years ago

Merck takes aim at superbugs, to buy Cubist in $9.5 bln deal

Dec 8 (Reuters) - Merck & Co Inc said on Monday it would buy Cubist Pharmaceuticals Inc in a deal valued at $9.5 billion, giving the major drugmaker an entry into the market for drugs that target so-called superbugs.

Merck and British rival AstraZeneca Plc have turned their attention to newer kinds of antibiotics that attack superbugs - strains of bacteria that are resistant to several types of antibiotics - after the 2013 threat report from the U.S. Centers for Disease Control and Prevention.

The CDC estimated that more than 2 million people in the United States are sickened every year by such infections, with at least 23,000 dying as a result. (1.usa.gov/1w5Hhml)

Cubist’s lead drug, Ceftolozane/Tazobactamis, is widely expected to win marketing approval from the U.S. Food and Drug Administration later this month as a treatment for complicated urinary tract infections.

Merck will pay $102 per share for Cubist, a premium of 37 percent to the Lexington, Massachussetts-based company’s closing share price of $74.36 on Friday.

The deal includes assumption of $1.1 billion in debt. (Reporting by Vidya L Nathan in Bengaluru; Editing by Ted Kerr)

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