Robert Cyran tells Richard Beales why Merck is spending $8.4 bln on Cubist – a biotech specializing in until recently unfashionable antibiotics.
Merck the pharmaceutical giant is on the acquisition trail again this time it's a Biotech keg called cubist that make sense of takes a biker and his clinching what's the story and the thing is that big car basically lost all interest in about it for about twenty years and ninety's and 2000 they basically stopped developing privilege and it was a pretty good -- -- drugs in this thing is that there were lost to cheap alternatives and didn't really seeing you core it regulators clamp down they were there were more bad side effects that are about drugs and so was ruling out putting into what is at 35 cities wells that's premium to buy this movie ends you start to see a lot of facts here are meeting involving by the promise of becoming resistant to existing drugs are being in India for instance hundreds of thousands of babies or are dying every year because in Iraq just in drugs. And uzbeks here now starting to come to the United States and inner seeing him more more people are getting alarmed about it. And regular regulators have made it clear they said you know it. If you got drugs will prove through very very quickly to his little worried about the for the funeral at a time when that there isn't willing to put together for instance if you can't do surgery because you're worried about getting infections that mean united before 194 is that capital time. That these resistant to profitable again and that's exactly know the things that they've also changed the way they pay for drugs wasn't real formula not decided if drugs that are. Africa's then they're gonna pay more and an about us or extra. They're seeing me in they were very very well and that's that's actually been a problem and passes his company said. You give it a drug to patient cures them and they don't come back we gonna nature's cure is something that all of us that are profitable good finish and they've actually decided to change that bit NASA getting paid more important you can you should meet you should keep prices have actually increased for the next decade Hitler so. And so that's what accompany an activist in very good position so quick any first take on on whether a good deal bad deal. It's a pretty good deal it is for for Merck I suspect that the negative period do very well on track position all right we'll leave that thinks rove we'll have more breaking news for you tomorrow.