Merck deal cashes out Cidara (NASDAQ: CDTX) director stock options
Rhea-AI Filing Summary
Cidara Therapeutics director James Merson reported the cash cancellation of stock options tied to Merck’s acquisition of Cidara. On January 7, 2026, a Merck subsidiary completed a tender offer for all outstanding Cidara common shares and Series A preferred shares and then merged into Cidara, which became a wholly owned Merck subsidiary. In connection with the merger, each of Merson’s outstanding stock options, including grants over 4,250, 2,125 and 11,100 Cidara common shares, became fully vested and exercisable and was then cancelled.
Each cancelled option was converted into the right to receive cash, without interest and subject to tax withholding, equal to the number of underlying shares multiplied by the excess of $221.50 per share over the option’s exercise price.
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Insights
Director options are cashed out for cash spread in Merck’s Cidara buyout.
The filing shows that Cidara Therapeutics director James Merson held several stock option awards that were affected by Merck’s acquisition of Cidara. On January 7, 2026, a Merck subsidiary completed a tender offer for all outstanding Cidara common and Series A preferred shares and then merged with Cidara, which now operates as a wholly owned Merck subsidiary.
Immediately prior to the merger’s effective time, each outstanding option became fully vested and exercisable. To the extent options remained unexercised at that time, they were cancelled and converted into a cash right. The cash amount is defined as the number of underlying Cidara common shares multiplied by the excess of $221.50 per share over the option’s exercise price.
The transactions reported for options over 4,250, 2,125 and 11,100 shares are coded as "D" for disposition, with 0% of those options remaining afterward. This illustrates a typical M&A treatment where equity awards are cashed out based on the deal price, with the actual value to the director depending on each award’s exercise price.
Insider Trade Summary
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Disposition | Stock Option (right to buy) | 4,250 | $0.00 | -- |
| Disposition | Stock Option (right to buy) | 2,125 | $0.00 | -- |
| Disposition | Stock Option (right to buy) | 11,100 | $0.00 | -- |
Footnotes (1)
- Pursuant to the Agreement and Plan of Merger (the "Merger Agreement"), dated November 13, 2025, by and among Cidara Therapeutics, Inc. (the "Issuer"), Merck Sharp & Dohme LLC ("Merck") and Caymus Purchaser, Inc., a wholly owned subsidiary of Merck ("Purchaser"), on January 7, 2026, Purchaser completed a tender offer to acquire (i) all outstanding shares of common stock of the Issuer, par value $0.0001 per share (each, a "Common Share") and (ii) all outstanding shares of Series A Convertible Voting Preferred Stock of the Issuer, par value $0.0001 per share and thereafter merged with and into the Issuer, with the Issuer continuing as the surviving corporation and a wholly owned subsidiary of Merck (the "Merger"). As of immediately prior to and contingent upon the occurrence of the effective time of the Merger, pursuant to the Merger Agreement, each outstanding option became fully vested and exercisable, and to the extent outstanding and unexercised as of immediately before the effective time of the Merger, was cancelled at the effective time of the Merger and converted into the right to receive cash, without interest, subject to any applicable withholding of taxes, in an amount equal to the product of (i) the total number of Common Shares subject to such option immediately prior to the effective time of the Merger multiplied by (ii) the excess of (x) $221.50 per Common Share over (y) the exercise price payable per Common Share under such option.
