MSD announces $9.5 billion acquisition of pharmaceutical company Cubist

Source: US stock Tencent Finance on the evening of December 8, 2014 Beijing time, MSD and pharmaceutical company Cubist pharmaceuticals announced today that they have reached a final deal agreement Under the agreement, MSD will acquire Cubist for $102 per share in cash Compared with the average share price of Cubist in the past five trading days, the purchase price proposed by MSD has a 35% premium; compared with the closing price of Cubist last Friday, the premium is 37% The board of directors of both companies have unanimously approved the deal The deal's equity value is $8.4 billion and will include $1.1 billion in net debt and other consideration, with a total deal value of about $9.5 billion Kenneth C Frazier, chairman and chief executive officer of MSD, said: "Cubist is a global leader in antibiotic drugs, and has established a strong portfolio of drugs for sale and later trial Combining this expertise with the powerful capabilities and global business coverage of MSD will enable us to create a stronger position in the field of hospital emergency care, while addressing some key unmet needs, such as antibiotic resistance " Cubist's flagship product is Cubicin, an intravenous antibiotic used to treat severe infections, with sales of $967 million in 2013 Analysts expect sales of the drug to continue to grow over the next few years Market analysts point out that MSD's interest in Cubist appears to have come from a strategy announced by the company in 2013 to narrow its focus to areas such as diabetes, hospital emergency care, vaccines and oncology MSD's current portfolio has aged, and the growth rate of januvia, its best-selling drug, has slowed down Recently, a therapy called keytruda developed by MSD has just been approved In August, MSD acquired idix pharmaceuticals, a hepatitis C drug developer, for about $3.9 billion