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.
bootstrap slideshow
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.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
an hour ago
- The Star
Bursa up as investors welcome trade framework
At 5pm, the FBM KLCI rose 6.89 points, or 0.45% to 1,523.84 from Tuesday's close of 1,516.95. KUALA LUMPUR: Bursa Malaysia ended higher yesterday, with investors adopting a cautiously optimistic stance following the announcement of a United States-China trade framework agreement, which includes provisions on technology trade. At 5pm, the FBM KLCI rose 6.89 points, or 0.45% to 1,523.84 from Tuesday's close of 1,516.95. The benchmark index opened 3.91 points higher at 1,520.86 yesterday morning, which was its day's low, and subsequently moved to a high of 1,530.85 in the early session. On the broader market, gainers thumped decliners 545 to 375, while 528 counters were unchanged, 921 untraded and 11 suspended. Turnover soared to 3.27 billion units worth RM2.59bil compared with yesterday's 2.72 billion units worth RM2.09bil. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan told Bernama that the development in the US-China trade negotiations marks a constructive step toward de-escalation, although it falls short of a material breakthrough. Domestically, the market found additional support from encouraging macroeconomic data, with figures released yesterday by the Statistics Department showing that the sales value of the manufacturing sector rose by 4.8% year-on-year in April 2025, reaching RM160.6bil. — Bernama
The Star
2 hours ago
- The Star
Deal ‘is done', says Trump, as China and US trade truce gets back on track after London talks
BEIJING: China and the United States agreed to revive a fragile trade truce after two days of talks in London, further defusing tensions between the two geopolitical rivals. US President Donald Trump said on Wednesday (June 11) that the deal with China 'is done' and that the relationship was 'excellent'. Hours earlier, Chinese Vice-Premier He Lifeng, who led the negotiating delegation in London, called on the US to 'stay true to your words', and 'demonstrate good faith in keeping promises'. The agreement, which concluded close to midnight on June 10 in London, followed a roller coaster of rising and easing tensions over non-tariff measures, after both sides agreed in May in Geneva to a 90-day truce that sharply lowered tariffs on each other's goods. The main sticking points since May were Beijing's restrictions on rare earth exports to the US and Washington's curbs on the export of chip design technology to China. In a Truth Social post, Trump said full magnets, along with any necessary rare earth minerals, will be supplied upfront by China. In return, the US will provide to China 'what was agreed to', including allowing Chinese students to attend colleges and universities in the US, which he noted 'has always been good with me!'. Separately, US Commerce Secretary Howard Lutnick told reporters that the 'framework' reached in London puts 'meat on the bones' of the Geneva agreement, adding that it will still need approval from both leaders. He said Chinese restrictions on rare earth minerals and magnets and some of the recent US export restrictions would be removed 'in a balanced way' but did not provide details. China's Vice-Commerce Minister Li Chenggang told reporters after the talks that both countries had agreed on a framework to implement the consensus that Chinese President Xi Jinping and Trump had reached after a June 5 phone call, as well as May's trade truce. He described the talks as in-depth, professional, rational and frank. 'The progress achieved at the London talks is beneficial to enhancing trust between the two countries, advancing the healthy and stable development of China-US economic ties, as well as provide positive energy to the global economic development,' Li said. Analysts saw the latest talks as positive. Professor Wu Xinbo, director of the Centre for American Studies at Shanghai's Fudan University, said he expects the US to roll back the non-tariff measures threatened or imposed on China after the Geneva talks, such as revoking visas of Chinese students studying in the US. 'As for the Chinese side, it may accelerate the process of rare earth exports to help resolve the urgent needs of the Americans,' he said. The May agreement was derailed on June 1 when the US accused China of 'slow-rolling' licences for exports of rare earths, which are critical in the production of cars, chips and other products. China dominates the world's rare earth supply chain, accounting for nearly 70 per cent of the global mining output and processing about 90 per cent of the total supply – a trump card Beijing has cultivated for decades. However, economist Bert Hofman noted that China's delay in rare earth export licences was partly due to 'bureaucratic inertia'. 'The process was cumbersome and brought issues for industries around the world, not just for the US. So it was not specifically targeted at US companies,' he said. Washington, meanwhile, activated its own levers on China. On May 29, it announced the revocation of visas for Chinese students and issued export control guidelines for AI chips, as well as effectively halting sales of chip design software to China. Chinese tech firms that design chips rely on such foreign software, known as electronic design automation. China's Ministry of Commerce on June 2 criticised these measures as discriminatory and accused the US of violating the consensus of the Geneva talks. Just as all the signs pointed to the breakdown of the truce, the June 5 call between Xi and Trump was widely seen as having reset fraught relations. This was followed on June 7 by China's Ministry of Commerce's announcement that it had approved a number of applications for rare earth exports, and will continue to strengthen the approval process for such applications. Even as the London talks were ongoing, Beijing strategically underscored its resilience. In a front-page interview on the official People's Daily on June 10, Huawei founder Ren Zhengfei discussed China's technology and research capabilities, particularly in chips. The Chinese telecommunications equipment giant has emerged as a national champion for areas such as AI chips called the Ascend processors, which Washington has recently warned other countries against using. Asked how he feels about Huawei being under a blockade, Ren said: 'Don't think about the difficulties – just do it, one step at a time.' - The Straits Times/ANN
The Star
7 hours ago
- The Star
Indonesia nears trade deals with EU, Eurasian bloc
JAKARTA: (Bernama) Indonesia is close to finalising trade deals with the European Union (EU) and the Eurasian Economic Union (EAEU) by year-end to expand market access and attract foreign investment, officials said. The two agreements are the Indonesia-EU Comprehensive Economic Partnership Agreement (CEPA) and the Indonesia-EAEU Free Trade Agreement (FTA). Trade Minister Budi Santoso said the agreements are crucial amid global trade uncertainty, with the potential to diversify Indonesia's export markets and provide alternatives for products impacted by the United States tariff policies. "Negotiations are progressing rapidly, and we are targeting completion this year. We will ensure the benefits can be felt by businesses and the public at large,' he said in a statement. The deals aim to lower tariff and non-tariff barriers on key Indonesian exports such as palm oil, agricultural products, textiles, and electronics, while also covering investment, sustainability, and support for small and medium-sized enterprises (SMEs). Talks with the EU began in 2016, while negotiations with the EAEU, comprising Russia, Kazakhstan, Belarus, Armenia and Kyrgyzstan, were launched in 2022. According to the Ministry of Trade, Indonesia's total trade with the EU reached US$30.1 billion in 2024, with a US$4.5 billion surplus, and trade with the EAEU stood at US$4.1 billion, with a US$1.1 billion deficit. The ministry said the agreements are expected to diversify export markets and reinforce Indonesia's position as a key economic player in Southeast Asia. "These deals are not only about increasing trade, but also about boosting competitiveness, creating jobs, and supporting industrial growth,' said International Trade Negotiations director-general Djatmiko Bris Witjaksono. The Indonesian government is promoting the deals through its BISA Export Programme, which supports local micro, small, and medium enterprises (MSMEs) in accessing global markets through business matching, training, and partnerships. - Bernama
