Biotech Values

[DewDiligence]

MRK eying CBST acquisition (CBST +22% AH):

http://dealbook.nytimes.com/2014/12/05/merck-in-talks-to-acquire-drug-maker-cubist-for-more-than-7-billion/

Merck is expected to pay roughly $100 per share for Cubist, valuing the company in the range of $7.5 billion… A deal could be announced as early as next week.

…Merck appears to be willing to pay about a 33 percent premium for the company, according to the people briefed on the matter. It was not immediately clear if Merck would pay for Cubist shares with cash, stock or a mix of the two.

33% is in-line with the median premium for biotech buyouts (#msg-108678012).