Nov 13 (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.