Merck has entered into a definitive agreement to acquire Cubist Pharmaceuticals, Inc. in a transaction valued at approximately $9.5 billion. Cubist develops and supplies antibiotics to treat serious and potentially life-threatening infections caused by a broad range of increasingly drug-resistant bacteria.
 
Cubist’s antibiotic CUBICIN is the only approved once-a-day therapy for both S. aureus bacteremia and complicated skin and skin structure infections (cSSSI). Cubist has a late-stage pipeline of anti-infective medicines, including ZERBAXA, which is pending FDA approval. Merck expects the acquisition to add more than $1 billion of revenue to its 2015 base.
 
“Cubist is a global leader in antibiotics and has built a strong portfolio of both marketed and late-stage pipeline medicines,” said Kenneth C. Frazier, chairman and chief executive officer, Merck. “Combining this expertise with Merck’s strong capabilities and global reach will enable us to create a stronger position in hospital acute care while addressing critical areas of unmet medical need, such as antibiotic resistance.”
 
“Combining with Merck is an exciting opportunity to accelerate Cubist’s established leadership in antibiotics and deliver significant, certain and immediate value to shareholders,” said Michael Bonney, chief executive officer, Cubist. “We have a deep respect for Merck, and it is clear that they share our commitment to addressing the growing, global problem we are facing in combating antibiotic-resistant bacteria. Under Merck’s robust commercial platform, global reach and scientific expertise, we believe Cubist’s programs can thrive. We’re proud of the company that our team has built and are confident that Cubist’s important mission and focus on significant unmet medical needs will continue.”