Germany's Merck Seals US$3.9bln Deal To Buy US Biotech Firm Springworks
07 March 2024, Hesse, Darmstadt: A Merck KGaA brand logo stands in front of the company premises. Photo: Arne Dedert/dpa
FRANKFURT, April 28 (Bernama-dpa) - German health care and science group Merck has sealed a deal to bolster its cancer treatment portfolio with a US$3.9 billion acquisition of US biotech firm SpringWorks Therapeutics, German Press Agency (dpa) reported.
Chief executive Belén Garijo on Monday called the deal a "major step" for Merck, adding that it will sharpen the company's focus on patients with rare tumours, accelerate company growth, and strengthen its presence in the US.
The acquisition is expected to close in the second half of the year, pending approval from SpringWorks shareholders and regulatory authorities.
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SpringWorks, based in Connecticut, was spun off from Pfizer in 2017 and specialises in therapies for tumours and blood cancers. The company already has a US-approved drug for advanced soft tissue tumours, which may soon gain approval in the European Union.
Merck had confirmed advanced discussions with SpringWorks last week.
Despite recent growth in its pharmaceuticals division, Merck has faced pressure to bring new drugs to market after several high-profile clinical trial failures.
Merck had therefore increasingly focused on licensing other companies' drugs, but recently began considering acquisitions again.
Garijo emphasised that Merck is still positioned to pursue further "major transactions" after the SpringWorks deal.
Merck's last major acquisition was in 2019, when it bought US semiconductor supplier Versum Materials for approximately US$5.8 billion.
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