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Yahoo
4 days ago
- Business
- Yahoo
Merck KGaA ventures into new territory in the US
This story was originally published on PharmaVoice. To receive daily news and insights, subscribe to our free daily PharmaVoice newsletter. Merck KGaA has been making new moves to propel itself into becoming what CEO Belén Garijo described as a 'globally diversified science and technology powerhouse.' Most recently, the company closed its $3.4 billion acquisition of Pfizer spinout SpringWorks Therapeutics, which will help it stake a claim in the rare tumor space. And in general, it's all about 'doubling down' on R&D and building the company's U.S. footprint, said Miguel Fernández Alcalde, president of EMD Serono, Merck KGaA's healthcare business in the U.S. and Canada. Germany-based Merck KGaA has undergone a number of transformations throughout its deep history. In 2022, the company restructured into three distinct business units including one focused on the life sciences sector and manufacturing services. But with the contract manufacturing blitz of the COVID-19 pandemic era fading, the company is refocusing. EMD Serono relocated its U.S. headquarters to Boston's Seaport district to place itself squarely in the thick of the region's most innovative 'biotechs, startups, academia and scientists,' Fernández Alcalde said. 'I want to make sure we are bringing the U.S. [business] to the next level in terms of contributions to the whole organization." Miguel Fernández Alcalde President, EMD Serono Merck KGaA also elevated its global head of R&D and chief medical officer of its healthcare business, Dr. Danny Bar-Zohar, to healthcare CEO. 'That tells you that the company's moving along in the direction of doubling down on R&D,' Fernández Alcalde said. Fernández Alcalde's appointment to president of EMD Serono in December is also part of the company's overall quest to build its U.S. footprint and bolster R&D through external deals. 'I want to make sure we are bringing the U.S. [business] to the next level in terms of contributions to the whole organization,' he said. 'I do think we have lots of opportunities in the U.S. ecosystem and U.S. market. My job and my vision and ambition is to really untap all those things that we have ahead of us.' A pharmacist by trade, Fernández Alcalde has been with Merck KGaA since 2014, serving most recently as EMD Serono's chief operating officer. 'That gave me a lot of knowledge and understanding of the business of the company in the States and the teams, the dynamics, the culture, but also the U.S. [healthcare] ecosystem,' he said. Driving dealmaking Central to Fernández Alcalde's role is supplementing the company's current pipeline through external innovation investments, including more strategic in-licensing and co-development opportunities. The SpringWorks acquisition put the company on track to generate at least 50% of its future launch assets from external companies, compared to roughly 10%-15% just 18 months ago. 'It's easily a fivefold increase in our ambition from external innovation,' Fernández Alcalde said. In terms of what kinds of deals they're targeting, Fernández Alcalde said several factors are at play. 'We are not looking [for] the $40 billion type of acquisition,' he said. Nor will they chase first-in-class potential blockbusters with never-explored mechanisms of action. Instead, they'll target smaller deals with the 'right risk balance' for their pipeline. He pointed to the SpringWorks acquisition as an example, which not only adds two FDA-approved drugs to its portfolio, but also a 'runway of three to five years of nice growth' in the form of several clinical-phase pipeline candidates. 'These areas where we have deep, good science [and a] validated proof of concept or an about-to-be-validated proof of concept where the mechanism of action is already validated, is something we are interested in,' he said. The company will take a similar approach when it comes to therapeutic areas by branching out within reason. 'We are not sticking to the [therapeutic areas] we have today, but we are not going to go wild, either,' he said. Rather, they'll look for specialties that are 'adjacent' and 'logical' in terms of what they've been historically known for, such as oncology and neurology/immunology. Again, he pointed to the SpringWorks acquisition as an example and noted that some might ask what track record EMD Serono or Merck KGaA has in rare tumors. 'The answer is zero. But we do know how to commercialize,' he said. Plus, 'it's in an adjacent area of oncology.' Fernández Alcalde is also thinking globally, intending to follow good science wherever it leads and consider deals from around the world. 'We couldn't care less about where that science is coming from, whether it's China, my home country Spain, the U.S. or South Africa,' he said. 'If we think that science will help patients … we will definitely think about it.' Recommended Reading Let's make a deal? Big Pharma execs express varying views on their M&A future
Fibre2Fashion
04-08-2025
- Business
- Fibre2Fashion
Merck sells surface solutions to GNMI in Germany for $769.6 mn
Merck, a leading science and technology company, has successfully closed the divestment of its global Surface Solutions business to Global New Material International Holdings Ltd. (HKSE: 6616) following approval by all relevant regulatory authorities and the satisfaction of other customary closing conditions. The selling price amounts to €665 million (~$769.6 million). Merck will use the net proceeds from the divestment to strengthen its strategic core businesses. The Surface Solutions business was transferred to GNMI, one of the largest manufacturers of pearlescent pigments, on July 31, 2025. Merck has completed the €665 million (~$769.6 million) sale of its global Surface Solutions business to GNMI. The move aligns with Merck's strategy to focus on tech-driven growth. GNMI will operate the unit under the new Susonity brand, with 1,100 staff transferred. German jobs are secured until 2032. Key sites in Germany, the US, and Japan remain, with long-term supply agreements in place. 'With the closure of this transaction, we are further sharpening our portfolio focus on technology-driven business,' said Belén Garijo, Chair of the Executive Board and CEO of Merck. 'Alongside the recent acquisitions of SpringWorks Therapeutics, HUB Organoids, Unity-SC, and Mirus Bio, the divestiture of non-strategic business remains a key component of our M&A strategy, geared toward ensuring long-term growth through innovation.' 'By divesting Surface Solutions, we are positioning our Electronics business sector even more strongly as a provider of semiconductor solutions. At the same time, GNMI offers new possibilities for the Surface Solutions business. This means that employees will gain long-term future prospects while customers will benefit from a broader product portfolio,' added Kai Beckmann, Member of the Executive Board at Merck and CEO Electronics. 'We thank our colleagues for their dedicated work and valuable contributions they have made for Merck in the past and wish them all the best for the future.' 'We are delighted to welcome the new employees to our company. Our activities complement one another to a large extent in terms of products, expertise and regional presence. Together, we are on an excellent footing to drive growth in a highly dynamic market segment,' said Ertian Su, Chairman & Chief Executive Officer of GNMI. The transaction covers Merck's global Surface Solutions business with sales of more than € 400 million in 2024, which GNMI will continue under the new Susonity brand. Around 1,100 employees, more than 600 of whom are based in Germany, have been transferred to GNMI. As part of the agreement with Merck, GNMI has guaranteed both the future of the Gernsheim site and the employment of its staff based in Germany until 2032. Savannah, USA, and Onahama, Japan, will remain important production sites for Susonity alongside Gernsheim. Moreover, Merck and GNMI have entered into a series of supply and service agreements to ensure the seamless transition of the business. Merck will remain the owner of the property at the Gernsheim site. The area used by Surface Solutions will be leased to GNMI on a long-term contract. The GreenTechPark Fluxum in Gernsheim is not affected by the divestment. Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged. ALCHEMPro News Desk (HU)
Yahoo
02-07-2025
- Business
- Yahoo
Merck concludes SpringWorks acquisition for $3.4bn
Merck KGaA has concluded the previously announced acquisition of SpringWorks Therapeutics for an enterprise value of €3bn ($3.4bn), after receiving regulatory approvals and fulfilling customary closing conditions. The merger, announced in April 2025, will positively impact Merck's financial position by contributing to revenues immediately, and is anticipated to be accretive to its earnings per share by 2027. Merck will add two SpringWorks' products targeting rare tumours with limited treatment options. Ogsiveo (nirogacestat) is approved by the Food and Drug Administration (FDA) for adults with progressing desmoid tumours requiring systemic treatment. The European Medicines Agency's (EMA) Committee for Medicinal Products for Human Use (CHMP) also recommended its approval in June 2025. Gomekli (mirdametinib) is approved by the FDA for neurofibromatosis type 1 (NF1)-related symptomatic plexiform neurofibromas (PN) in adults and children aged two years and above deemed unsuitable for complete resection. Mirdametinib also received a positive opinion from CHMP in May 2025. Merck executive board chair and CEO Belén Garijo stated: 'The acquisition of SpringWorks illustrates our decisive portfolio approach to further position Merck as a globally diversified science and technology powerhouse. 'This is the largest acquisition we have made for our healthcare business sector in nearly 20 years, marking an exciting new chapter. Furthermore, we remain committed to identifying mergers and acquisitions opportunities across our three business sectors, with a focus on life science, prioritising strategic fit, financial robustness and long-term value creation.' The integration of SpringWorks' portfolio enhances Merck's strategic focus on developing treatments for rare tumours, including commercialisation rights for pimicotinib developed by Abbisko Therapeutics aimed at tenosynovial giant cell tumour patients. As a result of this transaction, trading of SpringWorks shares on Nasdaq has ceased, with shareholders receiving $47 per share in cash from Merck. "Merck concludes SpringWorks acquisition for $3.4bn" was originally created and published by Pharmaceutical Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
02-07-2025
- Business
- Yahoo
Merck concludes SpringWorks acquisition for $3.4bn
Merck KGaA has concluded the previously announced acquisition of SpringWorks Therapeutics for an enterprise value of €3bn ($3.4bn), after receiving regulatory approvals and fulfilling customary closing conditions. The merger, announced in April 2025, will positively impact Merck's financial position by contributing to revenues immediately, and is anticipated to be accretive to its earnings per share by 2027. Merck will add two SpringWorks' products targeting rare tumours with limited treatment options. Ogsiveo (nirogacestat) is approved by the Food and Drug Administration (FDA) for adults with progressing desmoid tumours requiring systemic treatment. The European Medicines Agency's (EMA) Committee for Medicinal Products for Human Use (CHMP) also recommended its approval in June 2025. Gomekli (mirdametinib) is approved by the FDA for neurofibromatosis type 1 (NF1)-related symptomatic plexiform neurofibromas (PN) in adults and children aged two years and above deemed unsuitable for complete resection. Mirdametinib also received a positive opinion from CHMP in May 2025. Merck executive board chair and CEO Belén Garijo stated: 'The acquisition of SpringWorks illustrates our decisive portfolio approach to further position Merck as a globally diversified science and technology powerhouse. 'This is the largest acquisition we have made for our healthcare business sector in nearly 20 years, marking an exciting new chapter. Furthermore, we remain committed to identifying mergers and acquisitions opportunities across our three business sectors, with a focus on life science, prioritising strategic fit, financial robustness and long-term value creation.' The integration of SpringWorks' portfolio enhances Merck's strategic focus on developing treatments for rare tumours, including commercialisation rights for pimicotinib developed by Abbisko Therapeutics aimed at tenosynovial giant cell tumour patients. As a result of this transaction, trading of SpringWorks shares on Nasdaq has ceased, with shareholders receiving $47 per share in cash from Merck. "Merck concludes SpringWorks acquisition for $3.4bn" was originally created and published by Pharmaceutical Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
02-07-2025
- Business
- Yahoo
German pharma giant Merck takes over US cancer specialist
German pharmaceutical giant Merck has completed a €3 billion ($3.5 billion) takeover of US biopharmaceutical company Springworks Therapeutics, the firm confirmed on Tuesday. With the acquisition, Merck intends to build a business around the treatment of rare tumours, where it sees a therapeutic gap. "Many of those affected are still young and face a lengthy treatment path with an uncertain outcome and only limited treatment options," said Danny Bar-Zohar, head of Merck's pharmaceuticals division. Springworks already has a drug approved in the US for the treatment of progressive soft tissue tumours and for a disease with benign tumours on the skin or nerves. Both drugs could soon also be given the green light in the EU. The deal is the largest for Merck's pharmaceutical unit in nearly 20 years. Merck chief executive Belén Garijo described the acquisition as "pioneering." Garijo told dpa that both Springworks therapies could become blockbuster drugs in the future, meaning that each could generate sales of at least $1 billion per year for Merck. The acquisition of Springworks is a "transformative step," the manager explained. It will allow Merck to expand its business in the US, focus more on rare diseases and accelerate growth. At the same time, Garijo did not rule out further acquisitions, above all in the business with products for pharmaceutical research and drug manufacturing. Merck's pharmaceuticals division has recently shown solid growth. However, the group is under pressure to bring new drugs onto the market. Several promising drugs that were supposed to bring billions into Merck's coffers have failed in clinical trials. The acquisition of Springworks, the largest in the pharma division since the purchase of the Swiss group Serono in 2007 for €10.3 billion, is expected to directly increase Merck's sales. Merck's last major acquisition was the US semiconductor supplier Versum Materials in 2019, worth around €5.8 billion. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
