Merck To Buy Prometheus Biosciences For $11 Billion

(CTN News) – It is stated in the joint statement that Merck will provide $200 per share for the biotechnology company that specializes in the development of products for the treatment of immunological diseases, through one of its subsidiaries.
According to a statement released on Sunday, Merck & Co has agreed to buy Prometheus Biosciences Inc for about $10.8 billion in order to strengthen the company’s presence in immunology.

An announcement made by Merck and its subsidiaries stated that the pharmaceutical company would pay $200 per share for a biotechnology company that specializes in the development of products that treat immunological diseases, through one of its subsidiaries, on the basis that it had entered into a licensing agreement.

According to the closing price on Friday, the Prometheus shares went for $114.01, which represents a premium of 75% to the closing price on Thursday, when the Prometheus shares closed at $114.01.

On Friday, when the market closed at 5,42 billion dollars, Prometheus had a market capitalization of $5.42 billion dollars.

It has been reported that Merck has been seeking deals as a strategy to protect itself from eventual revenue losses due to the expiration of patents on its cancer immunotherapy Keytruda near the end of the decade.

As Merck’s Chairman and Chief Executive Officer, Robert Davis, recently stated in a statement, “We look forward to accelerating our growth in areas such as immunology, where there remains a significant unmet patient need, and this transaction will diversify our portfolio overall.”.

It is anticipated that the deal, which was first reported by the Wall Street Journal, will close in the third quarter of this year, according to the companies.

Earlier this year, Merck released its earnings forecast for 2023, which was lower than analysts’ expectations, and it seemed that the drug company expected steep declines in sales of its antiviral drug, COVID-19, over the next few years.

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