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Prometheus Biosciences shares rose 70% in premarket trading Monday after Merck & Co. announced it would acquire the company in a $10.8 billion deal.
The deal, announced on Sunday, gives Merck promising treatments for immune diseases.
All shares of Prometheus Biosciences will be acquired by a Merck subsidiary for US$200 per share.
The acquisition is subject to the approval of Prometheus Biosciences stockholders.
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Signage outside of Merck & Co. headquarters in Kenilworth, New Jersey. (Photographer: Christopher Occhicone/Bloomberg via Getty Images/Getty Images)
“The agreement with Prometheus will accelerate our growing presence in immunology, where there is significant unmet patient need,” said Robert Davis, CEO of Merck. “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.”
Prometheus had a market cap of $5.4 billion as of Friday’s close. Its shares are up about 4% year-to-date.
Merck is looking to add new products to its pipeline as its top-selling cancer drug Keytruda is expected to go off-patent this decade.
Merck’s sales last year were $59.3 billion, of which Keytruda’s sales accounted for around $21 billion.
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In this photo illustration a Prometheus Biosciences logo seen on a smartphone. ((Photo illustration by Omar Marques/SOPA Images/LightRocket via Getty Images)/Getty Images)
Based in San Diego, California, Prometheus develops immune treatments and has no approved products.
The company’s pipeline drug in development, which treats immune disorders such as ulcerative colitis and Crohn’s disease, recently reported separate positive study results in mid-stage testing.
Merck & Co. signage on the floor of the New York Stock Exchange. (Photographer: Michael Nagle/Bloomberg via Getty Images/Getty Images)
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The company’s sales totaled $6.8 million last year.
| ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| RXDX | PROMETHEUS BIOSCIENCES INC. | 114.01 | +1.15 | +1.02% |
| MRK | MERCK & CO. INC. | 115.31 | -0.27 | -0.23% |
Merck recently struck another deal, agreeing to acquire blood cancer biotech Imago BioSciences for $1.35 billion.
The Wall Street Journal first reported that talks were underway.