What's Happening?
Merck & Co. has announced its acquisition of Cidara Therapeutics in a deal valued at approximately $9.2 billion. This strategic move provides Merck with CD388, a long-acting influenza prevention drug currently in Phase 3 trials. CD388 aims to prevent flu with a single
dose for an entire season, particularly targeting high-risk and older patients. The drug has received FDA Fast Track and Breakthrough Therapy designations, supported by a $339 million BARDA award to accelerate development.
Why It's Important?
Merck's acquisition of Cidara Therapeutics underscores the pharmaceutical giant's strategic shift towards long-acting flu prevention as it prepares for life after its cancer drug Keytruda. The deal positions Merck to capitalize on the potential peak U.S. sales of $2-4 billion for CD388, addressing a target population of up to 100 million people. This acquisition reflects Merck's focus on expanding its infectious disease portfolio and leveraging its global commercial infrastructure to drive growth in the post-Keytruda era.
What's Next?
The acquisition is structured as a tender offer and is expected to close in Q1 2026, subject to antitrust and other customary approvals. Merck will focus on integrating Cidara's assets and advancing CD388 through Phase 3 trials. Positive trial results could lead to a U.S. BLA filing and potential market launch around the turn of the decade. The success of CD388 could redefine flu prevention strategies, complementing existing vaccines and addressing vulnerable populations.
