Acquisition of Cubist Pharmaceuticals, Inc. (CBST) by Merck & Co., Inc. (MRK) May Not Be in Shareholders' Best Interests

News provided by

Dec 09, 2014, 09:31 ET

SAN DIEGO and LEXINGTON, Mass., Dec. 9, 2014 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the proposed acquisition of Cubist Pharmaceuticals, Inc. (NASDAQ: CBST) by Merck & Co., Inc. (NYSE: MRK). On December 8, 2014, the two companies announced the signing of a definitive merger agreement pursuant to which Merck will acquire Cubist Pharmaceuticals. Under the terms of the agreement, Cubist Pharmaceuticals shareholders will receive $102 for each share of Cubist Pharmaceuticals common stock.

View this information on the law firm's Shareholder Rights Blog: http://www.robbinsarroyo.com/shareholders-rights-blog/cubist-pharmaceuticals-inc

Is the Proposed Acquisition Best for Cubist Pharmaceuticals and Its Shareholders?

Robbins Arroyo LLP's investigation focuses on whether the board of directors at Cubist Pharmaceuticals is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.

On October 21, 2014, Cubist Pharmaceuticals released its earnings results for its third quarter 2014, reporting strong quarterly earnings. Total net revenues for the third quarter fiscal 2014 were $309.2 million, up 16% compared to $266 million for the comparable quarter in fiscal 2013. Additionally, international product revenues were $16.6 million compared to $13.0 million in third quarter 2013. In commenting on these results, Cubist Pharmaceuticals Chief Executive Officer Mike Bonney remarked, "This was a strong quarter for Cubist in which we made significant progress against our 2014 financial and business objectives, driven by CUBICIN and meaningful contributions across our portfolio.… Third quarter results reflect important momentum across our portfolio and complement our continued launch preparation leading up to the December FDA action date of our potential blockbuster ceftolozane/tazobactam, now known as ZERBAXA."

In light of these facts, Robbins Arroyo LLP is examining Cubist Pharmaceuticals' board of directors' decision to sell the company now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.

Cubist Pharmaceuticals shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information. Cubist Pharmaceuticals shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, [email protected], or via the shareholder information form on the firm's website.

Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The law firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.

Attorney Advertising. Past results do not guarantee a similar outcome.

Contact:
Darnell R. Donahue
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, CA 92101
[email protected]
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com

Logo - http://photos.prnewswire.com/prnh/20130103/MM36754LOGO

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/acquisition-of-cubist-pharmaceuticals-inc-cbst-by-merck--co-inc-mrk-may-not-be-in-shareholders-best-interests-300007486.html

SOURCE Robbins Arroyo LLP