Merck, the pharmaceutical giant also known worldwide as MSD, reiterates its belief that the acquisition of Cubist can create value for shareholders even after yesterday's latest decision by the US district court of Delaware which states that Hospira will be able to create as early as June 16 2016 an alternative generic drug to Cubicin, a daptomycin-based bactericidal antibiotic for intravenous administration produced by Cubist and often marketed in Europe by Novartis.
TRENDONLINE – December 9, 2014
Merck, the pharmaceutical giant also known worldwide as MSD, reiterates its belief that the acquisition of Cubist can create value for shareholders even after yesterday's latest decision by the US district court of Delaware which states that Hospira will be able to create as early as June 16 2016 an alternative generic drug to Cubicin, a daptomycin-based bactericidal antibiotic for intravenous administration produced by Cubist and often marketed in Europe by Novartis. However, Merck believes that the Cubist acquisition will drive approximately 5% growth in the company's non-GAAP earnings per share in 2016.
The revenues that the Cubist acquisition should bring to Merck's balance sheet as early as 2015 are valued at over one billion dollars.
Only yesterday Merck had announced the acquisition of Cubist for 102 dollars in cash valuing it at 9.5 billion dollars in terms of enterprise value (therefore including equity for 8.4 billion and 1.1 billion dollars of debt).
Related news:
Merck wins Cubist for $102 upfront, a $9.5 billion deal
Merck, an international healthcare giant known in many markets as MSD, has reached a definitive agreement to acquire Cubist Pharmaceuticals for $102 in cash per share.
Merck, a global healthcare giant known in many markets as MSD, has reached a definitive agreement to acquire Cubist Pharmaceuticals for $102 in cash per share. The offer implies a premium of 35% over Cubist's average price over the past five trading days and values the company at $9.5 billion ($1.1 billion of which is linked to the group's net debt). Cubist is a leading antibiotic company.
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