Merck to Buy Cubist for $8.4B in Cash to Add Antibiotics

The transcript discusses a significant acquisition in the pharmaceutical industry, where Cuba Pharmaceuticals, a maker of antibiotics, is being acquired in a deal valued at over $7 billion. The deal includes $1.1 billion in net debt and represents a 37% premium to Cubists' last close. This acquisition is part of a broader trend where large pharmaceutical companies are cutting their R&D costs by outsourcing and acquiring other companies. The transcript also compares the workforce sizes of the involved companies, highlighting the strategic shifts in the industry.

What is the estimated value of the deal involving Cuba Pharmaceuticals?

• $12 billion

• $10 billion

• $7 billion

• $5 billion

What percentage premium is being offered to Cubists' last closing price in the acquisition deal?

• 25%

• 30%

• 40%

• 37%

What strategy are big pharma companies adopting to manage their R&D costs?

• Focusing on marketing instead of R&D

• Reducing R&D altogether

• Outsourcing R&D to other companies

• Increasing internal R&D spending

How many employees does Cuba Pharmaceuticals have?

• 1,000

• 873

• 5,000

• 10,000

How many employees does Merck have?

• 50,000

• 60,000

• 70,000

• 76,000