Zoe Bollinger
Dec 9, 2014
Featured

Merck Plans to Continue with Cubist Acquisition Even After Loss of Key Patents

Today, Merck is scrambling to reassure investors about Cubist purchase after a federal judge yesterday afternoon invalidated four of five patents on Cubicin, an antibiotic that generated $967 million in sales last year and accounted for about 80% of Cubist sales, mostly in the U.S. The ruling means that generic versions can become available in 2016, at least three years earlier than expected.

What Does Merck do Now That Cubist Lost a Key Patent Ruling? - Pharmalot - WSJ
Timing, as they say, is everything. Yesterday, Merck executives were trumpeting their $8.4 billion deal to buy Cubist Pharmaceuticals, which they believe will help the drug giant push deeper into antibiotics and accelerate a strategy to provide a wider palette of treatments in acute hospital care. Cubist is one of a few companies that specialize in drugs to treat infectious diseases, primarily in hospital settings.