In A Deal Worth $11 Billion, Merck Will Acquire Prometheus Biosciences

Merck has agreed to buy Prometheus Biosciences for around $10.8 billion in order to strengthen the company's footprint in immunology, the firms said on Sunday.

‍

According to the joint announcement, Merck will pay $200 per share for the biotechnology business that specializes in therapies for the treatment of immunological illnesses through one of its subsidiaries. This marks a 75% premium over Prometheus' Friday closing price of $114.01.

‍

By the end of Friday, Prometheus had a market value of $5.42 billion.

‍

Merck has been hunting for partnerships to safeguard itself from income loss when patents on its cancer treatment Keytruda expire at the end of the decade.

‍

‍

"The collaboration with Prometheus will help us expand our footprint in immunology, where there is still a significant unmet patient need." "This purchase diversifies our entire portfolio," stated Merck Chairman and CEO Robert Davis.

‍

The agreement is anticipated to finalize in the third quarter of this year, according to the firms.

‍

Merck anticipated 2023 earnings below Wall Street projections and a significant decrease in sales of its Covid-19 antiviral medicine in February.

‍