The biotech stocks are hitting fresh new highs to start the week after the announcement of yet another multi-billion dollar deal. Pharmaceutical giant Merck & Co., Inc. (NYSE: MRK) has agreed to purchase advanced antibiotic pharmaceutical company Cubist Pharmaceuticals Inc (NASDAQ: CBST) for $9.5 billion.
The deal breaks down to Merck paying about $102 a share, a 37 percent premium from Cubist's close on Friday. The deal was spurred by the recent rise in antibiotic resistant diseases in the U.S., a field where Cubist already has a well-established and efficient pipeline with drugs on the market as well as some awaiting approval.
Highlighted below are a number of biotechnology ETFs that were moving after the announcement of the latest deal.
iShares NASDAQ Biotechnology
The iShares NASDAQ Biotechnology Index (ETF) (NASDAQ: IBB) is made up of 118 NASDAQ listed biotechnology and pharmaceutical companies.
The top individual holdings include:
/www.benzinga.com/etfs/sector-etfs/14/12/5064123/3-biotech-etfs-rally-on-merger-news alt=3 Biotech ETFs Rally On Merger News>Full story available on Benzinga.com
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