Pharmaceutical Company Merck Acquires Prometheus for 14 Trillion Won to Strengthen Immunotherapy

Global pharmaceutical company Merck is set to acquire Prometheus Biosciences for approximately $10.8 billion (about 14.12 trillion KRW) to strengthen its immunology treatment portfolio, the Wall Street Journal (WSJ) reported on the 16th (local time).

According to the report, Merck announced that it agreed to acquire Prometheus Biosciences at $200 per share. This represents a 75% premium over the closing price of $114.01 per share on Friday, the 14th. The acquisition is expected to be completed in the third quarter of this year. Earlier, WSJ reported that Merck was in the final stages of negotiations for this acquisition.

[Image source=AP Yonhap News]

Merck has been seeking new mergers and acquisitions (M&A) to expand its portfolio before the patent expiration of one of its flagship products, the cancer treatment drug Keytruda. Last year, Merck's total sales reached $59.3 billion, with Keytruda alone accounting for $21 billion in sales. The patent for Keytruda is set to expire around 2028.

San Diego-based Prometheus Biosciences is developing treatments for immune diseases, including ulcerative colitis and Crohn's disease. Its sales last year amounted to approximately $6.8 million. Analysts at SVB Securities LLC estimate that the company will grow to a scale exceeding $1.6 billion by 2029.

Robert Davis, CEO of Merck, emphasized, "This deal is important to add diversity to our overall portfolio and to strengthen a sustainable innovation engine that will drive growth over the next decade," and stated that the acquisition will be completed within this year.

WSJ noted that M&A activity has been active recently in the pharmaceutical industry, reporting that pharmaceutical companies are seeking acquisitions amid concerns that sales could sharply decline as patents for bestsellers expire. Previously, Merck also acquired Amigo Biosciences for $1.35 billion to strengthen its portfolio of blood disorder treatments.

This content was produced with the assistance of AI translation services.