Merck KGaA in Talks to Acquire SpringWorks Therapeutics

Published 4 days agoSWTX

Merck KGaA in Talks to Acquire SpringWorks Therapeutics

Merck KGaA is in advanced discussions to acquire SpringWorks Therapeutics, a biotech firm based in Connecticut known for its treatments in cancer and rare diseases. This update was confirmed by Merck KGaA, though they caution that no legally binding agreement has been reached yet.

News of the potential acquisition fueled a sharp increase in SpringWorks' stock, which jumped approximately 34%, pushing the company's market value past $4 billion. The surge indicates strong investor sentiment regarding the possible deal, reflecting optimism about its impact on SpringWorks' market presence.

SpringWorks recently achieved a regulatory milestone with FDA approval for Gomekli, a treatment for neurofibromatosis type 1 with symptomatic plexiform neurofibromas. They are also awaiting FDA approval for mirdametinib, a MEK inhibitor targeting similar NF1-related conditions. While analysts speculate a purchase price of $77 per share, which could value the deal at around $5.7 billion, Merck KGaA emphasizes that several conditions must be satisfied before finalizing any transaction.

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