Merck & Co Inc (NYSE:MRK) is in talks to acquire Cubist Pharmaceuticals Inc (NASDAQ:CBST)for more than $7 billion in a deal that could be announced as early as next week, the New York Times reported on Friday, citing people briefed on the matter.
Merck will likely pay roughly $100 a share for Cubist, valuing the company that makes drugs to fight superbugs, in the range of $7.5 billion, the people said. (http://nyti.ms/1IbKXcJ)
It was not immediately clear if Merck would pay for Cubist shares with cash, stock or a mix of the two, the newspaper said.
Cubist shares rose about 22.7 percent to $91.25 on the Nasdaq in extended trade. Merck shares were flat. Both companies were unavailable for comment outside of regular business hours.
Earlier in June, Merck agreed to buy Idenix Pharmaceuticals for $3.85 billion to boost its hepatitis C drug portfolio.
(Reporting by Natalie Grover in Bengaluru; Editing by Lisa Shumaker)