Merck Nears Acquisition of Springworks Therapeutics
Merck KGaA, a German healthcare and technology conglomerate, is engaged in advanced negotiations to acquire Springworks Therapeutics, a US-based biopharmaceutical company specializing in cancer and rare diseases.
According to confidential sources, the deal, if finalized, could be signed within the next few weeks. While the specific terms remain undisclosed, Springworks boasts a market valuation of $3 billion.
Springworks, a commercial-stage biotech firm, has successfully developed drugs for various cancers and rare diseases, including uterine cancer and tumors. Its monotherapy treatment for desmoid tumors has received approval in the United States.
The acquisition of Springworks would represent one of Merck's largest pharmaceutical acquisitions in recent years, solidifying its efforts to expand its cancer treatment portfolio. In 2015, Merck acquired Sigma-Aldrich, a US lab equipment supplier, for $17 billion.
Despite recent setbacks in late-stage drug trials, Merck's market value stands at 61.25 billion euros ($63.13 billion). The company has reported a 12% increase in adjusted quarterly earnings, driven by reduced drug development expenses and increased demand for specialty materials.
Merck's cautious approach to acquisitions is influenced by the current pricing of potential targets. The company expects a recovery in sales growth across its core businesses to inform its future M&A strategy.