The Merck logo at the Merck campus in Rahway, New Jersey.
Brendan McDermid | Reuters
Merck agreed to buy back Biosciences Prometheus for about $10.8 billion to strengthen the company’s presence in the field of immunology, the companies said on Sunday.
The joint statement said Merck, through one of its subsidiaries, would pay $200 per share to the biotech company that makes products to treat immune diseases. That represents a 75% premium to the close of $114.01 for Prometheus stock on Friday.
Prometheus had a market capitalization of $5.42 billion at the end of Friday.
Merck has been seeking deals to protect itself from possible revenue loss as patents on Keytruda cancer immunotherapy begin to expire at the end of the decade.
“The agreement with Prometheus will accelerate our growing presence in the immunology field, where there is still significant unmet patient need. This transaction adds diversity to our portfolio. our overall investment portfolio,” said Robert Davis, President and CEO of Merck.
The deal, first reported by the Wall Street Journal, is expected to close in the third quarter of the year, the companies said.
Merck in February forecast 2023 earnings below Wall Street estimates and expected a sharp drop in sales of its Covid-19 drug.
