Pharmaceutical company Merck has announced it will acquire Prometheus Biosciences, a clinical-stage biotechnology company, for a whopping $10.8 billion.
The acquisition is one of the biggest healthcare deals announced so far in 2023. Merck announced an agreement to acquire the company for $200 per share in cash.
Prometheus is focused on a precision medicine approach for the discovery, development, and commercialization of novel therapeutic and companion diagnostic products to treat immune-mediated diseases, Merck said. Its lead candidate PRA023, is “a humanized monoclonal antibody directed to tumor necrosis factor (TNF)-like ligand 1A (TL1A), a target associated with both intestinal inflammation and fibrosis,” Merck said.
PRA023 could treat ulcerative colitis (UC), Crohn’s disease (CD) and other autoimmune conditions. The company announced positive trial results at the end of 2022, and its findings were recently presented at the 18th Congress of European Crohn’s and Colitis Organisation (ECCO).
“At Merck, we are committed to delivering on our purpose to save and improve lives and continue to identify and secure opportunities where compelling science and value creation align,” Robert M. Davis, chairman and CEO of Merck, said in a statement. “The agreement with Prometheus will accelerate our growing presence in immunology where there remains substantial unmet patient need. This transaction adds diversity to our overall portfolio and is an important building block as we strengthen the sustainable innovation engine that will drive our growth well into the next decade.”
Under the agreement, Merck will acquire all outstanding shares of Prometheus through its subsidiary. The deal is subject to Prometheus’ shareholders’ approval. The deal will also be subject to closing conditions and the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary conditions. Merck expects the deal to close in the third quarter of 2023.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."