Germany’s Merck KGaA has struck a deal to buy US biotech company SpringWorks Therapeutics for an equity value of $3.9 billion. The acquisition comes after regulatory approvals in Europe and the US, allowing SpringWorks’ rare cancer therapies to be sold ahead of expiring patents.
The deal was made possible due to the recent receipt of drug approvals in both Europe and the US. Analysts had initially expected a higher price tag but agreed that the lack of competition and market turmoil led to a lower bid.
SpringWorks will sell its oral treatment for rare desmoid tumors, Ogsiveo, across the EU this quarter, following EU approval. In February, the FDA approved SpringWorks’ drug Gomekli, which treats a type of rare genetic disorder that causes tumors to grow in nerve tissue.
The acquisition is Merck’s largest pharmaceutical deal since 2007 and comes at a premium of 26% to SpringWorks’ unaffected price on February 7. The deal is expected to be accretive to Merck’s earnings per share in 2027, with the company citing its ability to pursue larger transactions post-merger.
The sale will be funded by available cash and new debt, with a termination fee of $145.6 million if the deal falls through under certain circumstances. The transaction is expected to close during the second half of 2025, subject to shareholder approval and regulatory clearance.
Source: https://www.reuters.com/business/healthcare-pharmaceuticals/germanys-merck-kgaa-39-bln-deal-acquire-us-biotech-firm-springworks-2025-04-28