Latest news with #PeterGuenter
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 Germany Buys US Cancer Drugmaker SpringWorks Therapeutics For Around $4 Billion
SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) shares are trading higher on Monday after the company inked a deal to be acquired by Merck & Company, Inc. (NYSE:MRK) for $47 per share in cash. The acquisition price translates to an equity value of around $3.9 billion and an enterprise value of $3.4 billion (3.0 billion euros), based on SpringWorks' cash position of $461.9 million as of December 31, 2024. As per media reports in February, Merck Germany reacted to press reports and confirmed advanced discussions with SpringWorks Therapeutics. The offer represents a 26% premium over SpringWorks' 20-day volume-weighted average share price of $37.38 as of February 7, 2025, the day before initial market rumors of a potential acquisition surfaced. SpringWorks Therapeutics Secures FDA Approval For Second Cancer Drug The deal will be financed through a combination of available cash and newly issued debt. The acquisition aligns with Merck, Darmstadt, Germany's Healthcare division strategy, as detailed during its Capital Markets Day in October 2024, which emphasizes sourcing external innovation through licensing high-quality assets at various development stages and pursuing selective acquisitions that offer early value creation. Additionally, the move supports the company's strategic aim to expand its Healthcare presence in the United States. The acquisition, unanimously approved by both companies' boards, is expected to close in the second half of 2025, subject to shareholder and regulatory approvals. As of December 31, 2024, Merck Germany had cash and cash equivalents of 2.52 billion euros. Synergies: Once completed, the acquisition is expected to immediately contribute to Merck's revenue and become accretive to its earnings per share pre by 2027. Notably, SpringWorks' portfolio of rare tumor treatments, including a first-in-class, systemic standard-of-care therapy for adults with desmoid tumors and the only approved treatment for adults and children with symptomatic plexiform neurofibromas (PN) associated with neurofibromatosis type 1 (NF1), is projected to drive immediate and sustainable revenue growth for Merck KGaA, Darmstadt, Germany. In November 2023, The FDA approved SpringWorks Therapeutics' Ogsiveo (nirogacestat), an oral gamma-secretase inhibitor, for adult patients with progressing desmoid tumors who require systemic treatment. Ogsiveo is the first drug to be approved for the treatment of patients with desmoid tumors, a rare subtype of soft tissue sarcomas. Ogsiveo net product revenues were $61.5 million and $172.0 million in the fourth quarter of 2024 and full year 2024, respectively. Peter Guenter, member of the Executive Board and CEO of Healthcare at Merck KGaA, Darmstadt, Germany, said, "Together, Merck KGaA, Darmstadt, Germany 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." Last week, SpringWorks disclosed that its marketing authorization application (MAA) for FDA-approved treatment, OGSIVEO (nirogacestat) is currently under review by the European Medicines Agency (EMA), with a decision from the Committee for Medicinal Products for Human Use (CHMP) anticipated in the second quarter of 2025. Investors can gain exposure to the stock via iShares Genomics Immunology and Healthcare ETF (NYSE:IDNA) and Virtus LifeSci Biotech Products ETF (NYSE:BBP). Price Action: SWTX shares are trading higher by 3.20% at $46.15 at the last check Monday. Read Next:Photo via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? MERCK & CO (MRK): Free Stock Analysis Report This article Merck Germany Buys US Cancer Drugmaker SpringWorks Therapeutics For Around $4 Billion originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
