The American biopharmaceutical company Merck&Co Inc. intends to raise $8 billion through the sale of corporate bonds to finance the acquisition of Cidara Therapeutics Inc. This is reported by foreign media.
Merck plans to sell the bonds in 8 tranches with maturities from three to 40 years. The initial price of the bond maturing in 2065 exceeds the value of Treasury bonds by 1.2 percentage points. The proceeds from the sale of Merck bonds will be used to repay the debt and finance part of the acquisition of Cidara, as well as for other purposes.
BNP Paribas SA, Citigroup Inc., Deutsche Bank AG and HSBC Holdings Plc will act as organizers of the bond placement.
At the end of October, Merck&Co. entered into an agreement to acquire Cidara Therapeutics Inc. for $9.2 billion. The deal is aimed at strengthening Merck's position in the development of antiviral drugs for the treatment of respiratory diseases as compensation for the upcoming expiration of patents, including the anti-cancer drug Keytruda. The loss of patents will reduce sales by $18 billion in 2028.
The transaction is expected to be completed in the first quarter of 2026 after regulatory approval. In addition, in July 2025, Merck acquired the manufacturer of respiratory drugs Verona Pharma Plc for $10 billion, winning a tender from pharmaceutical companies amid competition for new drugs to increase the range of drugs.
The bond placement corresponds to an increase in borrowing, which has led to a record level of securities issuance in the world, exceeding $6 trillion.
In 2025, the value of biotech and pharmaceutical deals increased by 31% to $187 billion, including the acquisition of Intra-Cellular Therapies Inc by Johnson & Johnson for $14 billion and the acquisition of Avidity Biosciences Inc. by Novartis AG. Pfizer Inc. has won the bidding from Novo Nordisk A/S for biotech company Metsera Inc., concluding a deal worth $10 billion.
Merck&Co. (MSD outside the United States and Canada) is a multinational biopharmaceutical company headquartered in Kenilworth, New Jersey. MSD manufactures medicines and vaccines for the prevention and treatment of the most complex diseases (oncology, hepatitis C, infectious diseases, including HIV infection and Ebola). MSD Animal Health offers veterinary medicines for pets, while MSD Animal Health offers a wide range of digital tools for monitoring and managing animal health.
Cidara Therapeutics, Inc. is an American biotech company developing targeted therapies for the treatment of cancer and other serious diseases. The company is also developing the Cloudbreak platform, which allows the development of new drug conjugates with Fc, including CD388. The headquarters is located in San Diego, California.
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