Merck Is Buying Cidara Therapeutics for $9.2 Billion. Is This the Boost the Lagging Drugmaker Needs?

Over the past two years, Merck (NYSE: MRK) has faced several challenges, resulting in a decline in the company's share price. Even worse, the pharmaceutical giant could face more issues ahead, including the loss of patent exclusivity for its biggest cash cow, cancer medicine Keytruda, in about two years.However, the company has been looking to turn things around, and a recent acquisition is its latest move in that direction. Does this news make Merck a buy?On Nov. 14, Merck announced that it would acquire Cidara Therapeutics (NASDAQ: CDTX), a clinical-stage biotech company, for about $9.2 billion in cash. For larger drugmakers, acquiring smaller ones with promising candidates in the mid- or late stages of development is often easier than developing brand-new products in-house, a process that is expensive and risky. Considering the numerous clinical failures involved, a single massive commercial success may incur several billion dollars in expenses by the time it reaches the market.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool