Merck acquires Cubist Pharmaceuticals for $ 9.5 Billion

Merck acquires Cubist Pharmaceuticals for $ 9.5 Billion

Merck acquires Cubist Pharmaceuticals for $ 9.5 Billion

Merck said it will acquire Cubist Pharmaceuticals for $ 9.5 Bilion. The deal is with 35 percent premium to Cubist’s average stock price in the last five trading days. It includse $8.4 Billion in equity value and $1.1 Billion in debt.

 “Cubist is a global leader in antibiotics and has built a strong portfolio of both marketed and late-stage pipeline medicines,” said Ken Frazier, Merck Chief Executive Officer  said in the statement. “Combining this expertise with Merck’s strong capabilities and global reach will enable us to create a stronger position in hospital acute care while addressing critical areas of unmet medical need, such as antibiotic resistance.”added

 Bacteria with drug resistant are increasing public helath concern and Cubist is one of few ones with focusing on antibiotics. Main drug for Lexington is Cubicin, as well as sheet of other durgs for bacterial infections.

 Cubist is expected to earn another antibiotic, Zerbaxa, who helps to increase to 1.5 billion  in annaul revenues. In October 2014, Cubist announced a new CEO Robert J. Perez to take leadership on 1st of January 2015.

 The companies expect the deal to close in the first quarter of 2015.

Mr. Stakebay says :

 This deal helps Merck to focus on acute care in the hospital setting like oncology, diabetes, vaccines and with growing public health concern, Cubist increased aiming on antibiotics. By Merck’s expectation the deal to add over $1 billion in revenue in 2015.

 

MERCK

Cubist Pharmaceuticals

Revenue

€ 11.095 billion (2013)

$ 1.054 Billion (2013)

Operating income

€ 1.610 billion (2013)

$ 26.41 Million (2013)

Profit

€ 1.209 billion (2013)

$ – 18.57 Million (2013)

Total assets

€ 20.818 billion (2013)

$ 3.145 Billion (2013)

Total Equity

€ 11.069 billion (2013)

$ 1.393 Billion (2013)

Employees

38 154 (2013)

873 (2013)

 

Chairman and CEO of Merck……….Kenneth C. Frazier……..2011-present……$ 12 458 161 (2013)

CEO of Cubist Pharmaceuticals……Michael W. Booney…….2003-2014…………$ 6 605 945 (2013)

 

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