Merck has made plans to buy Cubist Pharmaceuticals for approximately $9.5 billion, leaving Cubist with a $400 million annual budget for antibiotic research. One drug created by Cubist, Cubicin, accounts for 80% of the company’s revenue. However, Cubicin’s patent will expire 2 years earlier than expected after a federal court determined the patent invalid. Another drug developed by Cubist is anticipating FDA approval later this month. If approved, Ceftolozane/Tazobactam will be used as treatment for complicated urinary tract infections.
The deal will provide Merck access into a market desperate for new drugs and discoveries. Many drug companies have abandoned antibiotics because of high costs and regulatory issues. Incentives are now being offered to companies who invest in the neglected antibiotic market. Companies who develop antibiotics are eligible for quicker FDA approvals and longer patent periods.
Many public health officials are concerned about the rising occurrence of antibiotic resistant super bugs. The CDC estimates that superbug infections sickened over 2 million Americans and killed more than 23,000 annually. With its new deal, Merck plans on directing efforts to hospitals, especially acute care where superbug infections are common. They aren’t the only company getting involved with antibiotics. Just last year, GlaxoSmithKline entered an agreement with the U.S. government to help create new drugs to fight antibiotic resistance and bioterrorism.
