Yahoo Finance·2025-11-23 12:01Core Insights - Cidara Therapeutics Inc. has experienced a 717% share price surge year-to-date, making it the top stock among SMID-cap stocks in 2025 [1] - Merck & Co. announced an all-cash acquisition of Cidara at $221.5 per share, valuing the deal at $9.2 billion, which represents a 109% premium over Cidara's closing price prior to the announcement [2] - Following the acquisition announcement, several analysts downgraded Cidara's stock rating, with Guggenheim's analyst raising the price target to the offer price of $221.5 [1][5] Acquisition Details - The acquisition by Merck is expected to close in the first quarter of 2026, pending necessary approvals [2] - A Merck subsidiary will acquire all outstanding shares of Cidara through a tender offer [2] Strategic Importance - Merck aims to enhance its infectious disease portfolio with Cidara's lead drug candidate, CD388, which is a late-stage antiviral for preventing influenza in high-risk individuals [3] - CD388 has received Breakthrough Therapy and Fast Track designations following positive Phase 2b results and is currently in Phase 3 trials [3] - Merck's CEO emphasized that CD388 is a crucial growth driver for the company over the next decade, especially in light of anticipated revenue declines from patent expirations of its key drug, Keytruda [4] Market Reactions - Following the acquisition announcement, Cidara's stock price increased by over 105% to close near the offer price [4] - Analysts from various firms, including H.C. Wainwright, JPMorgan, and RBC Capital, have also downgraded Cidara's stock to Hold, while Morgan Stanley raised its price target to the offer price [5]