(Reuters) -Merck ( MRK ) is closing in on a deal to buy Cidara Therapeutics ( CDTX ) in a deal valuing the biotechnology company at a premium to its $3.3 billion market capitalization, the Financial Times reported on Thursday.

The deal could be announced as soon as Friday, barring any final snags, FT said, citing people familiar with the matter. Merck ( MRK ) was still competing with another pharmaceutical company for Cidara late on Thursday, before it chose Merck's ( MRK ) offer.

While the exact price of the deal could not be learned, the report said that any deal is likely to include cash and milestone-based payments when clinical trial targets are hit.

Cidara Therapeutics ( CDTX ) declined to comment, while Merck ( MRK ) did not immediately respond when contacted by Reuters.

Last month, the U.S. Food and Drug Administration granted a "breakthrough therapy" designation to Cidara's experimental drug CD388, aimed at preventing influenza A and B in people at high risk of severe illness. The tag is meant to speed up development and review of drugs to treat a serious condition or unmet medical need.