Merck & Co. Under Pressure Following Patent Ruling

Merck & Co., Inc. MRK shares traded lower in the pre-market amid news that its deal to acquire Cubist Pharmaceuticals Inc CBST is facing patent difficulties.

“Merck said on Monday that the deal, which will give it access to Cubist's antibiotic Cubicin, is expected to add more than $1 billion to revenue in 2015 after closing in the first quarter, but will be neutral to non-GAAP earnings per share until 2016,” according to Reuters.

The report noted, however, that “Cubist may lose patent protection for Cubicin earlier than expected, after a Friday federal court ruling that invalidated four of its patents. If the ruling stands, it will allow Hospira Inc to launch a generic version of the drug in 2016.”

Merck & Co., Inc. traded at $59.85 in the pre-market, down 3.28 percent.