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Merck to buy US biotech SpringWorks for $3.9bn
(Sharecast News) - German science and technology giant Merck announced on Monday that it is to acquire US biopharmaceutical outfit SpringWorks Therapeutics as it attempts to ramp up growth in the healthcare sector. Merck is paying $47 per share for SpringWorks, representing an equity value of $3.9bn. While only a slight premium to SpringWork's closing price of $44.72 on Friday, the shares have surged by around 20% over the past five trading sessions.
SpringWorks provides therapy to adults with desmoid tumours, with an approved therapy for adults and children with neurofibromatosis type 1-associated plexiform neurofibromas.
Merck said the deal is fully aligned with its strategy to pursue in-licensing of "high-quality compounds at various stages of development and focused acquisitions that promise early value creation".
Belén Garijo, Merck's chair, said the acquisition represents a "major step in our active portfolio strategy to position Merck as a globally diversified, innovation and technology powerhouse".
Garijo continued: "For our Healthcare sector, it sharpens the focus on rare tumors, accelerates growth, and strengthens our presence in the US."
SpringWorks' share price was up 3.3% at $46.20 by 1127 in New York, while Merck gained 0.7% to $83.33 in Frankfurt.
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