Global Courant 2023-04-16 16:27:21
The Merck logo on the Merck campus in Rahway, New Jersey.
Brendan McDermid | Reuters
Merck has agreed to the acquisition Prometheus Biosciences for about $10.8 billion to bolster the company’s presence in immunology, the companies said Sunday.
The joint statement says that Merck, through one of its subsidiaries, will pay $200 per share for the biotechnology company that specializes in products to treat immunological diseases. That represents a 75% premium over the closing price of $114.01 for Prometheus shares on Friday.
Prometheus had a market cap of $5.42 billion at the end of Friday.
Merck is seeking deals to protect itself from any potential loss of revenue as the patents on its cancer immunotherapy Keytruda begin to expire by the end of the decade.
“The agreement with Prometheus will accelerate our growing presence in the immunology field, where there is still a substantial unmet patient need. This transaction adds diversity to our overall portfolio,” said Robert Davis, chairman and chief executive officer of Merck.
The deal, first reported by the Wall Street Journal, is expected to close in the third quarter of the year, the companies said.
Merck forecast in February that revenues for 2023 would be below Wall Street estimates and that sales of its Covid-19 antiviral treatment were expected to plummet.
Merck buys Prometheus Biosciences for approx
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