On Sunday Merck announced it will buy Prometheus Biosciences for about $10.8 billion, building up its presence in immunology.
All the shares of Prometheus Biosciences will be acquired by a subsidiary of Merck for $200 per share.
“The agreement with Prometheus will accelerate our growing presence in immunology where there remains substantial unmet patient need,” said Robert M. Davis, Merck’s chairman and chief executive officer. “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.”
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Shares of Prometheus were trading at $194.49 before the bell on Monday.
“This is allowing us to move into immunology in a strong way and will allow us sustainable growth, we think, well into the 2030s given the long patent life,” Merck Chief Executive Robert Davis said in an interview.
Last summer, Merck was reportedly in talks to buy cancer-focused biotech Seagen, but rival Pfizer ended up striking a $43 billion deal for Seagen last year.
Merck’s talks with Prometheus were first reported by the Wall Street Journal.
