Cidara's $9.2 Billion Exit: Did Shareholders Get Fleeced, or Was It a Fire Sale?
Alright, let's get one thing straight: whenever I see a headline screaming about a multi-billion dollar acquisition, my first thought ain't "innovation" or "synergy." It's "who's getting rich off this deal, and who's getting screwed?" So, Cidara Therapeutics is being swallowed whole by Merck for a cool $9.2 billion. Sounds impressive, right?
The Smell Test
But wait a minute. The Ademi Firm – and yeah, I know ambulance-chasing law firms aren't exactly bastions of altruism – is sniffing around, claiming Cidara's board might have screwed over shareholders. Their argument? The deal limits competing bids and insiders are getting a sweet payout. Color me shocked.
Here's the thing: $221.50 per share in cash sounds pretty damn good, especially considering Cidara's stock was supposedly "shadows of $100-levels" not long ago. But is it fair? Did the board really do their due diligence, or were they just itching to cash out? I mean, come on, we all know how these things usually go down.
And speaking of due diligence, has anyone actually used one of those "interactive TV" features the cookie notice blurb mentioned? Is that still a thing? I swear, my smart toaster probably collects more data than my TV. Anyway, back to the fleecing...
The Flu Game
Cidara's big claim to fame is CD388, some potential "game-changer" in flu prevention. Okay, fine. But let's be real, the flu shot is free at every corner drugstore. How much are they expecting to charge for this miracle drug? And more importantly, who's going to pay for it? Insurance companies? Good luck with that.
Morgan Stanley and RBC Capital are supposedly "optimistic" about Cidara. Offcourse they are. They probably have a vested interest in seeing this deal go through. As Tim Bohen, some "lead trainer," says, "I focus on momentum that’s visible right now. Speculation on future moves is outside my playbook.” Translation: "I only care about making money today, not whether this company is actually worth anything in the long run."
Cidara reported a loss in earnings per share, but hey, they have a "robust cash position"! That's corporate speak for "we're bleeding money, but we still have enough left to throw a decent party before the lights go out."
So, What's the Play Here?
Merck is obviously betting big on CD388. But is it really worth $9.2 billion? Or are they just buying up potential competition to squash it? Big Pharma has a long and storied history of that kind of shenanigans. It's like when Disney buys up every studio in Hollywood... and then remakes all their movies with a CGI sheen.
The stock jumped 105.6% after the acquisition news. Good for those who got in early, I guess. But what about the average retail investor who bought in at $200 hoping for a quick buck? Are they just collateral damage in this corporate feeding frenzy?
Then again, maybe I'm just being cynical. Maybe this is a great deal for everyone involved. Maybe CD388 really will revolutionize flu prevention and save millions of lives. And maybe pigs will fly out of my... well, you get the idea.
