Gibson Dunn & Crutcher and Cooley are advising on pharma giant Merck’s acquisition of biotech company Cidara Therapeutics.
Gibson Dunn is advising Merck on the deal, while Cooley is counselling Cidara.
Merck has agreed to buy Cidara for $221.50 per share, valuing the biotech business at $9.2bn. Cidara, which is based in San Diego, is developing drug-Fc conjugate (DFC) therapeutics, which are designed to treat serious disease such as viral infections and tumours.
The transaction is subject to a majority of Cidara’s equity holders tendering their shares, as well as other conditions, including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. The deal is expected to close in the first quarter of next year.
The Gibson Dunn team was led by New York-based co-head of M&A Saee Muzumdar with support from partner Sebastian Fain and associates Tracey Tomlinson and Kira Dennis. Other partners on the deal included Pamela Lawrence Endreny (tax), Michael Collins (benefits), Karen Spindler (life sciences), Meghan Hungate (IP) and Steve Weissman and Bradley Smith (antitrust).
The Cooley M&A team was predominantly based in its San Diego office and was led by senior counsel Barbara Borden, partners Rama Padmanabhan, Charles Bair, Jane Adams and Rowook Park and special counsel Julia Kim.
Gibson Dunn also advised Merck earlier this year on its $10bn acquisition of respiratory disease-focused biotech Verona Pharma, with Weissman also acting on that deal. Muzumdar also acted for Merck in its acquisition of EyeBio back in May 2024 in a transaction that could be worth up to $3bn.
Meanwhile, Cooley also previously advised Cidara on a dual financing and acquisition mandate, helping it raise $240m in a private placement and reacquire the development and commercial rights to CD388 from Janssen Pharmaceuticals, a drug to prevent against seasonal and pandemic influenza A and B – a key component of the Merck transaction. Bair advised Cidara on the private placement, while Adams led the team that advised on the Janssen deal.
Robert Davis, chairman and CEO of Merck, said: “We continue to execute our science-led business development strategy, augmenting our pipeline with CD388, a potentially first-in-class, long-acting antiviral designed to prevent influenza in individuals at higher risk of complications.
“We intend to build on the Cidara team’s remarkable progress and are confident that CD388 has the potential to be another important driver of growth through the next decade, creating real value for shareholders.”
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