Merck punting $10.8B on strengthening immunology pipeline

17 April 2023
merck_large

US pharma giant Merck & Co (NYSE: MRK) on Sunday revealed it has entered into a definitive agreement to acquire clinical-stage biotech Prometheus Biosciences (Nasdaq: RXDX).

Merck, which is looking to add new products to its pipeline as its mega-billion dollar cancer therapy Keytruda (pembrolizumab) is expected to lose patent protectionin2028, is offering to pay $200.00 per share in cash, a 75% premium to Prometheus' Friday closing price of $114.01, or an equity value of around $10.8 billion. Prometheus had a market cap of $5.4 billion as of Friday’s market close, up about 4% year-to-date.

Prometheus’ shares rocketed 70% to $194.01 in pre-market trading today.

This article is accessible to registered users, to continue reading please register for free.  A free trial will give you access to exclusive features, interviews, round-ups and commentary from the sharpest minds in the pharmaceutical and biotechnology space for a week. If you are already a registered user please login. If your trial has come to an end, you can subscribe here.

Login to your account

Become a subscriber

 

£820

Or £77 per month

Subscribe Now
  • Unfettered access to industry-leading news, commentary and analysis in pharma and biotech.
  • Updates from clinical trials, conferences, M&A, licensing, financing, regulation, patents & legal, executive appointments, commercial strategy and financial results.
  • Daily roundup of key events in pharma and biotech.
  • Monthly in-depth briefings on Boardroom appointments and M&A news.
  • Choose from a cost-effective annual package or a flexible monthly subscription
The Pharma Letter is an extremely useful and valuable Life Sciences service that brings together a daily update on performance people and products. It’s part of the key information for keeping me informed

Chairman, Sanofi Aventis UK

Companies featured in this story

More ones to watch >


Today's issue

Company Spotlight





More Features in Biotechnology