Shares of Cidara Therapeutics (CDTX) skyrocketed 93.41% in pre-market trading on Friday, following reports that pharmaceutical giant Merck is on the verge of acquiring the flu treatment start-up. The dramatic surge 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.

The surge in Cidara's stock price is further supported by recent positive developments in the company's drug pipeline. Last month, Cidara's experimental drug CD388, aimed at preventing influenza A and B in high-risk individuals, 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, with the pre-market surge indicating strong market optimism about the potential deal.