Merck & Co. Inc. has put a long-term strategy in play – building a specialty in acute care – with the acquisition of Cubist Pharmaceuticals Inc. Investors, however, may need some more convincing before they agree that the deal, valued at $9.5 billion, is worth the cost, especially if the remaining patent life for Cubist’s top seller, Cubicin (daptomycin), is short-lived.
The timing of the merger announcement couldn’t have been worse for Merck. Just hours after Merck revealed plans to buy...