Merck Reportedly Nears Deal To Buy Cubist Pharmaceuticals

(RTTNews) - Merck & Co. (MRK) is nearing an agreement to buy the Lexington, Massachusetts-based Cubist Pharmaceuticals Inc. for more than $8 billion, according to several media reports which quoted people familiar with the matter.

The reports noted that Merck would pay about $100 a share for Cubist, which is approximately 34 percent higher than Cubist's Friday closing price of $74.36. Amidst the reports, Cubist gained nearly 23 percent to $91.25 in the after-hours trading.

Cubist is a global biopharmaceutical company focused on the research, development, and commercialization of pharmaceutical products that address significant unmet medical needs in the acute care environment. According to the company's website, Cubist has had an unwavering focus on antibiotics for more than 20 years.

For 2013, Cubist's total net revenues grew 14 percent to $1.1 billion, with full year U.S. CUBICIN net product revenues rising 12 percent to $908.0 million.

In the middile of the year, Merck announced an agreement to acquire Idenix Pharmaceuticals, Inc. (IDIX), for about $3.85 billion. In October, Merck completed the sale of its consumer care business to German conglomerate Bayer AG (BYR.L, BAYRY.PK, BAYZF.PK).

MRK closed Friday's regular trading session at $61.49, up 57 cents or nearly 1 percent.