Merck KGaA to Acquire SpringWorks Therapeutics for $3.9 Billion

Published 3 hours agoMRK

Merck KGaA to Acquire SpringWorks Therapeutics for $3.9 Billion

Merck KGaA, the German healthcare firm, is set to acquire the U.S.-based biotech company SpringWorks Therapeutics in a deal valued at $3.9 billion. As part of the acquisition, Merck KGaA will pay $47 per share in cash, translating to an enterprise value of approximately $3.4 billion after factoring in SpringWorks' cash reserves. This move marks one of the latest in a series of big investments within the biotech sector aimed at securing valuable assets in the competitive field of rare cancer treatment.

According to Reuters, the acquisition will be funded through a combination of Merck KGaA's existing cash reserves and new debt. The deal is expected to contribute positively to Merck's adjusted earnings per share by 2027. Such financial maneuvers are typical in major acquisitions, providing the necessary capital while leveraging the potential synergies between the two companies.

This acquisition aligns with Merck KGaA's strategy to bolster its oncology portfolio, especially following hurdles in its own drug development ventures. SpringWorks, located in Stamford, Connecticut, is known for its focus on rare cancers and genetic disorders, with products like Ogsiveo and Gomekli, approved for specific tumor treatments. The move signifies Merck KGaA's commitment to enhancing its position within the niche but growing market of specialized cancer therapies.

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Merck KGaA to Acquire SpringWorks Therapeutics for $3.9 Billion

Merck KGaA to Acquire SpringWorks Therapeutics for $3.9 Billion

Merck KGaA, the German healthcare firm, is set to acquire the U.S.-based biotech company SpringWorks Therapeutics in a deal valued at $3.9 billion. As part of the acquisition, Merck KGaA will pay $47 per share in cash, translating to an enterprise value of approximately $3.4 billion after factoring in SpringWorks' cash reserves. This move marks one of the latest in a series of big investments within the biotech sector aimed at securing valuable assets in the competitive field of rare cancer treatment. According to Reuters, the acquisition will be funded through a combination of Merck KGaA's existing cash reserves and new debt. The deal is expected to contribute positively to Merck's adjusted earnings per share by 2027. Such financial maneuvers are typical in major acquisitions, providing the necessary capital while leveraging the potential synergies between the two companies. This acquisition aligns with Merck KGaA's strategy to bolster its oncology portfolio, especially following hurdles in its own drug development ventures. SpringWorks, located in Stamford, Connecticut, is known for its focus on rare cancers and genetic disorders, with products like Ogsiveo and Gomekli, approved for specific tumor treatments. The move signifies Merck KGaA's commitment to enhancing its position within the niche but growing market of specialized cancer therapies.