Merck Writes a $9.2 Billion Check for a Flu Drug That Could Change Everything

Core Insights - Merck & Co. has made a significant strategic move by acquiring Cidara Therapeutics for $9.2 billion, which has resulted in a more than 100% increase in Cidara's stock price, indicating a strong victory for its investors [3] - The market's stable reaction to the acquisition reflects Merck's confidence in its strategic planning, aiming to secure future revenue drivers and growth from a solid financial position [3][7] Strategic Imperative - Merck is addressing the upcoming 2028 patent expiration of its cancer therapy, Keytruda, by proactively diversifying its portfolio through science-led business development [4][5] - The acquisition of Cidara is part of a deliberate strategy to build long-term revenue drivers, showcasing Merck's commitment to sustainable growth [7] Financial Health - Merck's financial strength is highlighted by a trailing-twelve-month net income exceeding $17 billion and a debt-to-equity ratio of 0.69, allowing it to absorb the $9.2 billion acquisition without operational strain [6] - This acquisition follows Merck's recent purchase of Verona Pharma, indicating a consistent pattern of strategic investments in high-potential assets [6]