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Merck has agreed to acquire US biotech SpringWorks Therapeutics for an equity value of $3.9bn as the German pharmaceutical group looks to expand its portfolio of cancer treatments.
Merck said its all-cash offer of $47 a share for SpringWorks, which specialises in treatments for cancer and rare diseases, was at a 26 per cent premium to the company’s closing share price in February, before reports of their talks emerged.
The deal comes as the German healthcare and life sciences group struggles with the recent failure of some of its experimental drugs and the looming expiration of its patent for multiple sclerosis treatment Mavenclad.
Merck said the SpringWorks transaction would help it establish “a leadership position in rare tumours . . . where a large unmet medical need exists” and would boost its earnings per share from 2027.
Chief executive Belén Garijo said the transaction was a “major step” in Merck’s strategy to become a “globally diversified, innovation and technology powerhouse” that would “sharpen the focus on rare tumours, accelerate growth and strengthen our presence in the US”.
SpringWorks has developed a therapy for adults with desmoid tumours — rare soft tissue tumours — and a treatment for both adults and children with neurofibromatosis type 1, a genetic condition where tumours grow on the nerves and skin. Both have been approved in the US.
The deal is expected to close in the second half of the year and immediately contribute to Merck’s oncology business revenues, the company said.
Garijo said Merck would continue to explore M&A opportunities across its three business sectors: life science, healthcare and electronics.
