Merck & Co To Acquire Prometheus Biosciences For Nearly $11 Billion

The corporation will pay $200 per share for Prometheus Biosciences through one of its subsidiaries. Merck & Co has agreed to buy Prometheus Biosciences Inc for roughly $10.8 billion to expand its immunological business, the firms announced on Sunday. According to the joint announcement, Merck will pay $200 per share for the biotechnology business that specialises in therapies for the treatment of immunological illnesses through one of its subsidiaries.

This represents a 75% premium over Prometheus's Friday closing price of $114.01. At the end of Friday, Prometheus had a market capitalization of $5.42 billion. Merck has been hunting for partnerships to safeguard itself from income loss as patents on its cancer treatment Keytruda expire at the end of the decade. "The agreement with Prometheus will help us expand our presence in immunology, where there is still a significant unmet patient need." "This transaction diversifies our overall portfolio," said Merck chairman and CEO Robert Davis.

Merck will purchase all of Prometheus' outstanding shares through a subsidiary, according to the terms of the acquisition deal. The transaction is subject to shareholder approval at Prometheus Biosciences. The proposed transaction will be subject to certain circumstances, including the expiration of the Hart-Scott-Rodino Antitrust Improvements Act waiting period and other customary conditions. The agreement, first reported by the Wall Street Journal, is anticipated to finalise in the third quarter of this year, according to the firms. Merck forecasted 2023 profitability below Wall Street projections and a dramatic decrease in sales of its COVID-19 antiviral medicine in February.