Latest news with #Garijo
Yahoo
28-04-2025
- Business
- Yahoo
Merck KGaA strikes $3.9bn deal for SpringWorks
Merck KGaA (Merck) has moved to strengthen its position in oncology and rare diseases with a $3.9bn agreement to acquire SpringWorks Therapeutics. Under the deal, Merck will pay $47 per share in cash, representing a 26% premium to SpringWorks' average share price over the 20 days leading up to 7 February 2025, the day before media reports of the potential acquisition surfaced. Based on SpringWorks' cash holdings at the end of 2024, the deal gives the company an enterprise value of approximately $3.4bn. Headquartered in Darmstadt, Germany, Merck said the acquisition would 'immediately add revenue' and strengthen its oncology pipeline in the 28 April announcement. The deal will bolster Merck's oncology portfolio with US-based SpringWorks' pipeline of targeted therapies. These include Ogsiveo (nirogacestat), which is approved for treating desmoid tumours; as well as the MEK inhibitor Gomekli (mirdametinib), which was approved in February 2025 for treating neurofibromatosis type 1 (NF1). Ogsiveo generated $172m in sales in 2024, as per the company's financials. According to projections from GlobalData's Pharma Intelligence Center, Gomekli is projected to generate up to $564m in global sales by 2030 while Ogsiveo sales are expected to reach $1.2bn by the same year. GlobalData is the parent company of Pharmaceutical Technology. In a statement, Merck's CEO Belén Garijo said: 'The agreed acquisition of SpringWorks is a major step in our active portfolio strategy to position our company as a globally diversified, innovation and technology powerhouse. 'For our healthcare sector, it sharpens the focus on rare tumours, accelerates growth, and strengthens our presence in the US.' Late-stage talks between the companies were confirmed last week following several months of speculation. Reuters first reported in February 2025 that Merck was exploring a potential deal, triggering a 34% rise in SpringWorks' share price. Merck KGaA acknowledged the discussions at the time but cautioned that there was no certainty that an agreement would be reached. The acquisition marks the second deal for Merck in the space of a month. At the beginning of April, the company signed a $1.4bn multi-year collaboration with Caris Life Sciences to access novel antibody-drug conjugate (ADC) targets. Under the agreement, Caris will identify tumour-associated targets that Merck will take into preclinical and clinical development. Merck's lead internal ADC candidate M9140 is currently in Phase I trials for colorectal cancer. Merck expects the SpringWorks acquisition to close in H2 2025, subject to regulatory and customary approvals. 'Beyond this planned transaction, we will continue to explore M&A opportunities across our three complementary business sectors, always with a firm focus on strategic fit, financial robustness, and long-term value creation,' Garijo concluded. "Merck KGaA strikes $3.9bn deal for SpringWorks" 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
28-04-2025
- Business
- Yahoo
Merck KGaA strikes $3.9bn deal for SpringWorks
Merck KGaA (Merck) has moved to strengthen its position in oncology and rare diseases with a $3.9bn agreement to acquire SpringWorks Therapeutics. Under the deal, Merck will pay $47 per share in cash, representing a 26% premium to SpringWorks' average share price over the 20 days leading up to 7 February 2025, the day before media reports of the potential acquisition surfaced. Based on SpringWorks' cash holdings at the end of 2024, the deal gives the company an enterprise value of approximately $3.4bn. Headquartered in Darmstadt, Germany, Merck said the acquisition would 'immediately add revenue' and strengthen its oncology pipeline in the 28 April announcement. The deal will bolster Merck's oncology portfolio with US-based SpringWorks' pipeline of targeted therapies. These include Ogsiveo (nirogacestat), which is approved for treating desmoid tumours; as well as the MEK inhibitor Gomekli (mirdametinib), which was approved in February 2025 for treating neurofibromatosis type 1 (NF1). Ogsiveo generated $172m in sales in 2024, as per the company's financials. According to projections from GlobalData's Pharma Intelligence Center, Gomekli is projected to generate up to $564m in global sales by 2030 while Ogsiveo sales are expected to reach $1.2bn by the same year. GlobalData is the parent company of Pharmaceutical Technology. In a statement, Merck's CEO Belén Garijo said: 'The agreed acquisition of SpringWorks is a major step in our active portfolio strategy to position our company as a globally diversified, innovation and technology powerhouse. 'For our healthcare sector, it sharpens the focus on rare tumours, accelerates growth, and strengthens our presence in the US.' Late-stage talks between the companies were confirmed last week following several months of speculation. Reuters first reported in February 2025 that Merck was exploring a potential deal, triggering a 34% rise in SpringWorks' share price. Merck KGaA acknowledged the discussions at the time but cautioned that there was no certainty that an agreement would be reached. The acquisition marks the second deal for Merck in the space of a month. At the beginning of April, the company signed a $1.4bn multi-year collaboration with Caris Life Sciences to access novel antibody-drug conjugate (ADC) targets. Under the agreement, Caris will identify tumour-associated targets that Merck will take into preclinical and clinical development. Merck's lead internal ADC candidate M9140 is currently in Phase I trials for colorectal cancer. Merck expects the SpringWorks acquisition to close in H2 2025, subject to regulatory and customary approvals. 'Beyond this planned transaction, we will continue to explore M&A opportunities across our three complementary business sectors, always with a firm focus on strategic fit, financial robustness, and long-term value creation,' Garijo concluded. "Merck KGaA strikes $3.9bn deal for SpringWorks" 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
07-03-2025
- Business
- Yahoo
Merck KGaA reports YE24 earnings growth amid SpringWorks acquisition talks
Merck KGaA reaffirmed its strong performance in the healthcare sector in its FY 2024 earnings report, but provided little additional information on ongoing acquisition talks with SpringWorks Therapeutics. Speculation surrounding a potential transaction between the two companies first emerged on 10 February 2025, when Reuters reported that Merck KGaA was engaged in discussions to acquire SpringWorks. The same day, Merck KGaA acknowledged the negotiations, but stressed that there was no certainty a deal would be finalised. SpringWorks' stock price surged by 34% following the disclosure of the discussions, pushing its market capitalisation over $4bn. During a 6 March press call, Merck KGaA's CEO Belén Garijo stated that there 'is very little that we can say at this time,' regarding the ongoing talks. A successful acquisition would provide Merck KGaA with SpringWorks' portfolio of targeted oncology therapies, including Ogsiveo (nirogacestat), which is approved for desmoid treating tumours, as well as the MEK inhibitor Gomekli (mirdametinib), which was recently approved in February 2025 for treating neurofibromatosis type 1 (NF1), a rare genetic disorder. According to GlobalData's Pharma Intelligence Center, Gomekli is projected to generate up to $564m in global sales by 2030, while Ogsiveo sales are expected to reach $1.2bn by the same year. GlobalData is the parent company of Pharmaceutical Technology. Garijo emphasised that Merck KGaA's broader merger and acquisition (M&A) strategy remains focused on targeted, lower-risk deals aimed at strengthening its life sciences and healthcare portfolio, particularly through late-stage in-licencing opportunities. 'This is going to be absolutely limited to clear cut, low risk deals that will create value from very early on. So rest assured, we will fully comply with this and stay extremely disciplined when executing our M&A agenda,' said Garijo in a call to investors. The company's healthcare division reported 7% net sales growth in 2024, reaching €8.5bn ($9.2bn). Oncology was a key driver of this performance, with sales in the segment increasing by 12.7% to €2bn ($2.17bn). The company has made moves in the oncology space in recent years, including an October 2024 acquisition of Modifi Biosciences, a Yale University-spinout focused on DNA repair-targeting cancer therapies. Merck KGaA acquired all outstanding shares of Modifi through a subsidiary for an upfront payment of $30m, with the potential for additional milestone payments totalling up to $1.3bn. Merck KGaA's top-selling product in 2024 was Erbitux (cetuximab), which generated €1.16bn ($1.25bn) in revenue. The drug – a monoclonal antibody used in the treatment of certain head and neck cancers as well as colorectal cancer – is expected to see continued sales growth, with GlobalData's projections estimating it could generate $1.9bn in annual revenue by 2030. "Merck KGaA reports YE24 earnings growth amid SpringWorks acquisition talks" 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.
