Cubist to acquire TerraGen Discovery

Cubist Pharmaceuticals has signed a definitive agreement to acquireTerraGen Discovery, a privately-held company with operations in Vancouver, Canada, and Slough, UK, in a deal which the former believes will enhance its antimicrobial drug discovery platform. Under the terms of the agreement, Cubist will acquire all of TerraGen's outstanding shares and, upon completion of the transaction, will issue approximately $29 million worth of stock, or around 608,000 shares. The deal has already been approved by 75% of TerraGen shareholders.

Scott Rocklage, Cubist's chief executive, said that the acquisition "will accelerate the achievement of our strategic goal of attaining world leadership and a global presence in antiinfective drug discovery, development and commercialization."