Shares of Cidara Therapeutics (CDTX) are skyrocketing in pre-market trading, surging more than 105% following news that pharmaceutical giant Merck has agreed to acquire the company in a deal valued at approximately $9.2 billion. The dramatic rise comes as investors react to the significant premium offered in the acquisition.

Under the terms of the agreement, Merck will pay $221.50 per share in cash for Cidara, representing a premium of 108.9% to the stock's previous closing price. The boards of directors of both companies have approved the transaction, which is expected to close in the first quarter of 2026, subject to customary closing conditions.

The acquisition allows Merck to gain access to Cidara's lead candidate, CD388, a promising long-acting antiviral agent designed to prevent influenza infection in high-risk individuals. This move aligns with Merck's strategy to diversify its portfolio and drive growth beyond its blockbuster cancer drug Keytruda, which faces patent expiration later this decade. The deal highlights the growing interest in innovative therapeutics and the premium valuations companies are willing to pay for potential breakthrough treatments in the pharmaceutical industry.