Merck Kgaa is building its portfolio and pipes with an agreement of $ 3.9 billion to acquire Springworks Therapeutics, a company with two rare FDA tumor medications, which several use the potential for cancer.
According to the financial terms announced on Monday, Merck Kgaa will pay $ 47 for each Springworks action. While that is a 4.6% premium for the price of springworks closing actions on Friday, repeat a 26% premium at the price of biotechnology actions before a speculation about an acquisition of Merck in early February arose. When Springworks was made public in 2019, biotechnology set its shares at $ 18 each.
Springworks, based in Stamford, based in Connecticut, launched in 2017 with two license medications that Pfizer had filed after developing them initial in cancer. Springworks changed the development of both small molecules towards non -malignant tumors that have few treatments, if there are. One of those drugs, Ogsiveo, is a small molecule designed to block an enzyme that activates a receiver associated with tumor growth.
In 2023, Ogsiveo became the first drug approved by FDA for demoid tumors, a type of tumor that affects connective tissue. Springworks reported $ 172 million in income for the product in 2024. The medicine is also in the clinical development of the middle stage for ovarian granulose cell tumors, a rare type of ovarian cancer that currently does not have FDA’s therapies. Through the associations, the pill twice a day is evaluated as part of the combinations with BCMA orientation therapies for multiple myeloma.
Pfizer’s second license medication is Gomekli, a small molecule inhibitor or two Mek proteins. In February, FDA approved Gomekli for type 1 treatment neurofibromatosis (NF1), a rare genetic disease that leads to nerve tumors. With an approach that covers both adults and children, Gomekli has an advantage over Koselugo de Astrazeneca, which is only approved for NF1 pediatric patients. Gomekli is also found in the clinical development of the middle stage for low -degree pediatric gliomas.
Ogsiveo and Gomekli are under a regulatory review in Europe. OGSiveo is expected to receive a decision from the European Medicines Agency in demoid tumors in the current quarter. The widest marketing of both medicines will increase the payment to Pfizer, which is online for the marketing milestones of up to $ 232.5 million for OGSiveo and up to $ 229.8 million for Gomekli, according to the regulatory fillings of Springworks.
Merck, based in Darmstadt, Germany, said the acquisition of Springworks conforms to a strategic objective of strengthening its presence in the United States. The company added that Springworks medications complement its own portfolio, includes Pimicotinib, a medication that Abbisko Therapeutics has advanced to clinical development in late stage for the tumor of tennian giant cells. In addition to surgery, the only medications approved by the FDA for these foreign tumors are Ono Pharmaceuticals and Daiichi Sankyo products. Last month, Modid paid $ 85 million to exercise his option for the global marketing rights of Abbisko’s drug.
“We have the unique opportunity with Jumpworks to establish a leadership position in strange tumors and build a solid base for more investments in this area, where a great medical need not satisfied,” Peter Guenter, Merked CGAED’s Cetement CEO.
Merck said he is financing the acquisition of Springworks with available cash and a new debt. The company added that it retains the financial capacity to seek larger transactions, being a priority. Merck and Springworks directors boards and have approved the acquisition, which is expected to close in the second quarter of this year. The agreement still needs approvals of the shareholders and regulators of Springworks.
Springworks Therapeutics photo