Merck Buys Cubist for $8.4 Billion to Fight Antibiotic Resistance

Merck will buy advanced antibiotic researcher Cubist Pharmaceuticals for $8.4 billion, illustrating a new emphasis on combating so-called 'superbugs.' Merck said it will pay $102 per share of Cubist, a 37% premium to its closing price on Friday. The company expects the deal to add more than $1 billion of revenue to its 2015 base and significantly add to profit in 2016 and beyond. Merck called Cubist a global leader in the development of antibiotics and said that the acquisition will help it address critical areas like antibiotic resistance. The World Health Organization warned in April that without a coordinated effort, 'the world is headed for a post-antibiotic era, in which common infections and minor injuries which have been treatable for decades can once again kill.'