Merck divesting allergy business

Germany’s science and pharma company Merck KGaA (MRK: DE) is selling its allergy business Allergopharma to Dermapharm (DMPG: DE), a German off-patent branded medicines manufacturer.

The transaction, which is expected to close by the end of the second quarter 2020, is subject to regulatory approval and satisfaction of other customary closing conditions. The companies have agreed not to disclose the purchase price. Merck’s shares edged up 1.34% to 123.15 euros shortly after the announcement, while Dermapharm was up 3.05% to 41.28 euros

Back in 2015, Merck was rumored to be considering selling Allergopharma in a bid to reduce debts following a $17 billion takeover of American life sciences and biotech company Sigma-Aldrich and, at that time, it was suggested the business could fetch around $636 million.