Shares of Cidara Therapeutics (CDTX) skyrocketed 44.61% on Thursday, following reports that pharmaceutical giant Merck is on the verge of acquiring the flu treatment start-up. The dramatic surge in stock price comes as investors react to the potential for a significant premium in the acquisition.

According to sources familiar with the matter, Merck is in advanced talks to purchase Cidara Therapeutics at a valuation that could exceed the company's current market capitalization of $3.3 billion. The Financial Times reported that an official announcement of the deal could come as early as Friday, adding a sense of urgency to the market's reaction. This potential acquisition highlights Merck's interest in expanding its presence in the flu treatment market and recognizes the value of Cidara's innovative approaches.

Cidara's experimental drug CD388, aimed at preventing influenza A and B in high-risk individuals, recently received a "breakthrough therapy" designation from the U.S. Food and Drug Administration. This designation is meant to expedite the development and review of drugs addressing serious conditions or unmet medical needs, further underlining the potential value Merck sees in Cidara's technology. As investors eagerly await official confirmation, the stock is likely to remain volatile. If the deal materializes as reported, it could represent a significant windfall for Cidara shareholders and a strategic addition to Merck's pharmaceutical portfolio.