Merck remains committed to its $8.4 billion acquisition of Cubist Pharmaceuticals even though a federal court invalidated most of the company’s patents protecting its top-selling antibiotic just hours after the deal was announced this week.
Merck said Tuesday that it believes the acquisition will create value for shareholders and add more than $1 billion in revenue next year, with strong growth potential after that.
Cubist draws most of its revenue from the antibiotic Cubicin. It said Monday evening that a federal court invalidated four patents protecting the antibiotic, but upheld one that lasts until the middle of June 2016. That would stave off competition from cheaper generic versions until then.
Cubist Pharmaceuticals Inc. plans to appeal the ruling and it expects to complete the Merck deal in the first quarter.
