Latest news with #Gomekli
Yahoo
29-04-2025
- Business
- Yahoo
Merck KGaA to buy biotech SpringWorks for $3.9B
This story was originally published on BioPharma Dive. To receive daily news and insights, subscribe to our free daily BioPharma Dive newsletter. Merck KGaA has agreed to buy biotechnology company SpringWorks Therapeutics, announcing Monday a $3.9 billion deal after months of negotiations over an acquisition. The German pharmaceutical firm will pay $47 per SpringWorks share, a small premium to the stock's closing price Friday but 17% higher than the $40.28 it closed at on Feb. 7, the last trading day before reports emerged of the companies' discussions. SpringWorks has developed two drugs that are approved in the U.S. to treat rare tumors. Ogsiveo is cleared for adults with desmoid tumors, while Gomekli won the Food and Drug Administration's OK in February for adults and children with neurofibromatosis type 1 who experience symptoms from a type of benign tumor. Merck KGaA's proposed acquisition of SpringWorks is the first biotech buyout worth more than $1 billion to be announced since mid-January, when Johnson & Johnson agreed to purchase Intra-Cellular Therapies for $14.6 billion. The deals in between have been smaller and more opportunistic, reflecting a negotiating environment that's been frozen by uncertainty over tariffs and a gyrating stock market. Some of that turmoil may have played a role in drawing out discussions between German Merck and SpringWorks, which in February confirmed the two companies were in 'advanced talks.' While sizable in dollar terms, the deal that emerged nearly two months later values SpringWorks at a relatively low premium, even after adjusting for the share price run-up that followed reports on the companies' negotiations. Shares in SpringWorks were trading as high as $93.59 in early 2021, when the market for biotech stocks was booming. Merck KGaA, which provides bioprocessing services in addition to developing new drugs, has been hunting for deals as part of a strategy it rolled out last fall. The buyout is 'a major step in our active portfolio strategy' to position the company 'as a globally diversified, innovation and technology powerhouse,' CEO Belén Garijo said in a statement. 'Beyond this planned transaction, we will continue to explore M&A opportunities across our three complementary business sectors.' Once the deal is complete, Merck KGaA expects the addition of SpringWorks to immediately contribute to revenue via sales of the biotech's two approved drugs. The company said it will fund the acquisition via available cash and new debt, while retaining 'the ability to pursue larger transactions.' Merck KGaA also touted the buyout as a way to expand its presence in the U.S. The companies expect the transaction to close this quarter, contingent on their receipt of required regulatory sign-offs.
Epoch Times
28-04-2025
- Business
- Epoch Times
German Company in $3.9 Billion Deal to Buy US Biotech Firm SpringWorks
Merck KGaA, a German science and technology company, announced Monday that it has entered into a definitive agreement to acquire SpringWorks Therapeutics, a U.S. biopharmaceutical company focused on severe rare diseases and cancer, for $47 per share in cash, valuing the company at approximately $3.9 billion. The acquisition is intended to immediately add revenue and accelerate mid- to long-term growth for Merck, which operates its health care division as EMD Serono in the United States and Canada, said the deal will strengthen its presence in the U.S. pharmaceutical market and expand access to SpringWorks' treatments to more patients worldwide. '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,' said Belén Garijo, chair of the executive board and CEO of Merck, headquartered in Darmstadt, Germany. 'For our healthcare sector, it sharpens the focus on rare tumors, accelerates growth, and strengthens our presence in the U.S.' Merck said SpringWorks' marketed products will help drive immediate and sustainable revenue growth. The company's medicines include Ogsiveo, used to treat adults with a rare type of tumor called a desmoid tumor, and Gomekli, approved to treat nerve tumors linked to neurofibromatosis type 1 in adults and children as young as 2. Ogsiveo's marketing authorization application is under review by the European Medicines Agency, with a decision expected in the second quarter of 2025. Gomekli received FDA approval in February 2025 based on positive data from SpringWorks' Phase 2b ReNeu trial, which demonstrated durable tumor volume reductions and a manageable safety profile. Related Stories 4/19/2025 2/18/2025 Peter Guenter, CEO of Healthcare at Merck, said the acquisition would establish a leadership position in rare tumors. 'Together, our company and SpringWorks are the perfect combination to improve outcomes for patients with rare tumors and bring therapeutic innovations to more patients worldwide while building on and reinforcing the early success of SpringWorks in the United States,' he said. SpringWorks CEO Saqib Islam said joining Merck will create new opportunities to expand the company's therapies to global markets. 'We believe that by joining forces with Merck, Darmstadt, Germany, we are not only creating significant, immediate value for our stakeholders, but we will also be able to leverage their resources and expertise to build a brighter future for the patient communities we seek to serve while also creating new opportunities for SpringWorks employees as part of a global organization,' Islam said. The boards of directors of both Merck and SpringWorks have unanimously approved the transaction. The deal is expected to close in the second half of 2025, subject to closing conditions, including approval by SpringWorks' shareholders and regulatory authorities.
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
25-04-2025
- Business
- Yahoo
Merck KGaA nears $3.5bn deal for SpringWorks
Merck KGaA is edging closer to the SpringWorks deal, which was first rumoured in February, confirming late-stage negotiations at an estimated price of $47 per share – potentially valuing the deal at around $3.5bn. The company confirmed in a 24 April statement that while no final, legally binding agreement has been established, the 'parties are in discussion on the basis of a price of around $47 per share.' The news follows months of speculation. Market chatter around a potential acquisition began on 10 February 2025, when Reuters reported that Merck KGaA was exploring a deal. That same day, the German pharma firm acknowledged the discussions, but cautioned that there was no guarantee of a transaction. Following the report, SpringWorks shares jumped 34%, pushing the company's market capitalisation over $4bn. Merck KGaA's CEO Belén Garijobut declined to provide updates on the deal during the company's full-year earnings press call in March, keeping investors in suspense. Shares in SpringWorks were up by almost 9% when the markets opened on 25 April, after the latest development. A successful acquisition would bolster Merck KGaA's oncology portfolio with SpringWork's 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), a rare genetic disorder. 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. Merck KGaA already has a strong oncology pipeline. Its top-selling product in 2024 was Erbitux (cetuximab), which generated €1.16bn ($1.25bn) in revenue. The drug is a monoclonal antibody used to treat certain head and neck cancers, and colorectal cancer. However, not all programs have been as successful. In June 2024, Merck KGaA terminated the Phase III TrilynX clinical trial of xevinapant after the drug failed to significantly improve survival in patients with locally advanced head and neck cancer. Additionally, Merck KGaA has faced setbacks in its neurology pipeline, including the discontinuation of BTK inhibitor evobrutinib in March 2024. The decision followed two Phase II trials in relapsing multiple sclerosis, where the drug did not achieve a statistically significant reduction in annual relapse rates compared to Sanofi's Aubagio (teriflunomide). The programme had already come under scrutiny in April 2023, when the US Food and Drug Administration (FDA) placed a partial clinical hold on a Phase III study after cases of liver injury were reported. Merck KGaA has continued to prioritise the expansion of its oncology portfolio. Earlier in April 2025, 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, which Merck KGaA will take into preclinical and clinical development. Merck KGaA also has an internal ADC programme, with its lead candidate M9140 currently in Phase I trials for colorectal cancer. "Merck KGaA nears $3.5bn 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.
