Merck Snaps Up Cubist: Will 2015 Be The Antibiotics Renaissance?
2014 was a big year for acquisitions, and two in particular suggest that 2015 will be a big year for antibiotics. In October, Actavis acquired Durata, who makes antibiotics for skin infections. Two months later, Merck announced it would acquire the biopharmaceutical firm Cubist.
There is currently a high demand for antibiotics. Fortune reported that antibiotic-resistant infections could cost over $100 trillion by 2050, especially if antibiotic creation continues at its slow pace.
Why has it been slow? The biggest factor is low ROI from antibiotics. But Cubist is expected to reach a billion dollars in value in 2015. Merck’s work with Cubist could possibly spark other Big Pharma companies to focus on the antibiotics space as well. There’s hope that 2015 could lead to an “antibiotic renaissance.”
