Cubist Pharmaceuticals to purchase Optimer Pharmaceuticals

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Today, Cubist Pharmaceuticals Inc and Optimer Pharmaceuticals Inc announced commencing into a merger agreement. The said agreement stated that Cubist will purchase all outstanding Optimer shares of common stock. The transaction was valued at USD10.75 per share piece in cash of USD$535 million.

Aside from the cash payment, the shareholders at Optimer will get a Contingent Value Right (CRV) after being traded publicly. This entitled the holder to get additional one-time payment of up to USD5 per share piece they own.

The additional payment will be received after certain net sales were achieved by DIFICID, the company's top antibacterial drug. Optimer got US Food and Drug Administration approval for the antibacterial drug in May 2011. This was the first antibacterial drug that gained approval to treat Clostridium difficile-associated diarrhea.

The total value of the transaction was calculated to be as much as USD801 million on a fully diluted basis. The Board of Directors of both companies has approved the merger agreement.

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