On this episode of Stock Movers:
- Shares of biotech company Cidara Therapeutics (CDTX) surged as much as 106% in premarket trading after Merck agreed to buy the biotech for $221.50 per share in cash, for a total transaction value of about $9.2 billion. Merck is seeking deals to expand its portfolio of treatments as it prepares for patent losses that are expected to erode its sales by $18 billion over the next five years. In 2028, Merck faces a patent expiration for Keytruda, the best-selling drug in pharmaceutical history which accounted for almost half of the company’s revenue last year.
- Stubhub (STUB) shares tumble as much as 20% in premarket trading on Friday as analysts note that it was surprising that the ticketing platform did not provide a forecast for the current quarter. This is the firm’s first quarterly report after going public in September.
- Warner Bros. Discovery (WBD) shares rallied ahead of the US market open following a Wall Street Journal report that Paramount, Comcast and Netflix are preparing bids for the media giant. WBD amended the contract of Chief Executive Officer David Zaslav to ensure his stock options remain eligible to vest even if the media company is sold. The change, announced in a regulatory filing Thursday, follows the company’s decision last month to consider strategic options including a possible sale.