Tuesday, December 23, 2014

Merck Reduces Projection On Cubist Acquisition: Now Only "Mid Single Digits" Accretive In 2016 (Patent Uncertainty); But Zerbaxa® Opportunity Highlighted

Merck filed amended thirdy party tender offer materials with the SEC this morning -- related to the Cubist acquisition. As expected, Kenilworth trimmed projections in 2016 for Cubist overall (lowering its guess at accretive status for that year), due to uncertainities around the Cubicin® patent litigation. But it also highlighted the Zerbaxa® opportunity. So -- overall, this isn't really going to matter much, to big Merck -- but do compare these two slides:

The reason the first bit won't matter too much is this second slide, as imaged above -- look at the size of the market opportunity for Cubist's Zerbaxa -- just recently FDA approved, on this past Friday evening. That's a much larger opportunity than even Cubicin's. But to be sure, the reduction in 2016 projections is due to those well-publicized uncertainties surrounding the Cubicin patent litigation.

Now you know. Onward!

No comments: