The deal, announced Sunday, gives Merck promising immune disease treatments.
All the shares of Prometheus Biosciences will be acquired by a subsidiary of Merck for $200 per share.
The acquisition is subject to approval by Prometheus Biosciences shareholders.
Signage outside Merck & Co. headquarters in Kenilworth, New Jersey. (Photographer: Christopher Occhicone/Bloomberg via Getty Images / Getty Images)
“The agreement with Prometheus will accelerate our growing presence in immunology where there remains substantial unmet patient need,” said Merck CEO Robert Davis. “This transaction adds diversity to our overall portfolio and is an important building block as we strengthen the sustainable innovation engine that will drive our growth well into the next decade.”
Prometheus had a market cap of $5.4 billion as of Friday’s market close. Its shares are up about 4% year to date.
Merck is looking to add new products to its pipeline as its top-selling drug cancer therapy, Keytruda, is expected to lose patent protection this decade.
Merck’s sales last year came to $59.3 billion, with Keytruda sales making up roughly $21 billion of it.
In this photo illustration, a Prometheus Biosciences logo seen displayed on a smartphone. ( (Photo Illustration by Omar Marques/SOPA Images/LightRocket via Getty Images) / Getty Images)
The San Diego, California-based Prometheus develops immune treatments and doesn’t have any approved products.
The company’s pipeline drug in development treats immune diseases including ulcerative colitis and Crohn’s disease and recently reported separate positive study results in mid-stage testing.
Merck & Co. signage on the floor of the New York Stock Exchange. (Photographer: Michael Nagle/Bloomberg via Getty Images / Getty Images)
Company sales totaled $6.8 million last year.
|RXDX||PROMETHEUS BIOSCIENCES INC.||193.02||+79.01||+69.30%|
|MRK||MERCK & CO. INC.||114.75||-0.56||-0.49%|
Merck recently made another deal, agreeing to acquire blood-cancer biotech Imago BioSciences for $1.35 billion.
The Wall Street Journal first reported that talks were underway.
Source: Fox Business