Shares of Cidara Therapeutics (CDTX) skyrocketed 13.63% in after-hours trading on Thursday, following reports that pharmaceutical giant Merck is nearing a deal to acquire the flu treatment start-up. The sudden surge in stock price comes as investors react to the potential for a significant premium in the acquisition.
According to the Financial Times, Merck is in advanced talks to purchase Cidara Therapeutics at a valuation that could exceed the company's current market capitalization of $3.3 billion. The report suggests that an official announcement of the deal could come as early as Friday, adding a sense of immediacy to the market's reaction.
This potential acquisition highlights Merck's interest in expanding its presence in the flu treatment market and recognizes the value of Cidara's innovative approaches. As investors await official confirmation, the stock is likely to remain volatile. If the deal materializes as reported, it could represent a significant windfall for Cidara shareholders and a strategic addition to Merck's pharmaceutical portfolio.