Prometheus Biosciences Inc. has agreed to be acquired by Merck & Co. for approximately $10.8 billion in order to strengthen the company’s position in immunology, the firms announced on Sunday.
According to the joint announcement, Merck will acquire the biotechnology firm that specializes in solutions for the treatment of immunological illnesses for $200 per share through one of its subsidiaries. That is a 75% premium over the Prometheus shares’ Friday closing price of $114.01 per share.
At Friday’s closing price, Prometheus had a $5.42 billion market value.
As the patents on its cancer medicine Keytruda start to expire around the end of the decade, Merck has been exploring for partnerships to shield itself from potential revenue loss.
“The Prometheus partnership will speed up our expanding footprint in immunology, where there are still significant unmet patient needs. Our total portfolio is more diverse as a result of this deal, according to Merck Chairman and CEO Robert Davis.
According to the companies, the deal, which was first reported by the Wall Street Journal, is anticipated to close in the third quarter of the year.
In February, Merck issued a prediction for 2023 that included earnings below Wall Street expectations as well as a sharp fall in sales of its COVID-19 antiviral medication.
