Pharma giant Merck to buy Prometheus for nearly $11 billion
Pharmaceutical giant Merck has announced its acquisition of Prometheus Biosciences, a biotech company based in California, for approximately $10.8 billion in equity value.
According to a statement released by Merck, the deal was greenlighted after the two companies reached a definitive agreement under which Merck will acquire Prometheus for $200.00 per share in cash.
The Chairman and CEO of Merck, M. Davis, confirmed the deal on the company website and said that the acquisition would accelerate Merck's growing presence in immunology, an area where there remains a substantial unmet patient need.
The acquisition of Prometheus Biosciences is a significant step for Merck as it diversifies the company's overall portfolio, adding an important building block to its sustainable innovation engine.
Merck's financial results were better than expected in the fourth quarter of 2022, thanks in part to strong sales of its cancer drugs, despite a decline in its anti-Covid treatment molnupiravir.
Prometheus Biosciences is a clinical-stage biotechnology company that is developing a treatment for autoimmune diseases, including ulcerative colitis and Crohn's disease. The company's leading product is PRA023, a precision medicine approach for the discovery, development, and commercialisation of novel therapeutic and companion diagnostic products for the treatment of immune-mediated diseases.
According to Merck Research Laboratories' President, Dr Dean Y. Li, "By applying a portfolio of powerful analytic tools to a comprehensive collection of IBD samples, Prometheus identified important disease insights that have now yielded a promising late-stage candidate."
The acquisition is subject to Prometheus Biosciences' shareholder approval and is expected to close in the third quarter of 2023, subject to certain conditions, including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary conditions. The share price of Prometheus Biosciences, Inc. closed at $114.01 on the New York Stock Exchange on Friday.
The acquisition of Prometheus Biosciences adds diversity to Merck's portfolio and is an important step for the company's growth strategy.
