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Merck to buy Cubist Pharmaceuticals for $8.4 billion
Merck to buy Cubist Pharmaceuticals for $8.4 billion

Merck & Co. agreed to buy Cubist Pharmaceuticals Inc. for $8.4 billion in cash to add products to help fight the growing threat of drug-resistant bacteria. Merck will begin a $102-a-share tender offer for Cubist, the companies said Monday. The price is 37% above Cubist's closing level Dec. 5. Including net debt, the deal is valued at about $9.5 billion. Merck Chief Executive Ken Frazier said the deal will add to its line of drugs used in hospitals, one of four areas of strategic focus the drug maker announced last year. "We will continue to look at our portfolio to bolster those areas where we can have leadership and market growth, and to divest those things that have...

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