Merck (NYSE:MRK) is a New Jersey-based healthcare company with substantial worldwide reach. The company develops and produces medicines, vaccines, biologic therapies, and animal health products. Its wide range of products has made Merck one of the most successful multinationals in the United States and around the world.
Investors responded well after the healthcare giant made another significant splash to kick off the New Year.
On Monday, January 8, Merck announced an agreement to buy cancer-treatment developer Harpoon Therapeutics in a deal valued at $680 million. This will allow Merck to significantly bolster its oncology pipeline. That should excite investors going forward, considering the growth potential in this space.
Fortune Business Insights recently valued the global oncology drugs market size at US$184 billion in 2022. That same report projected that the market would grow to $205 billion in 2023 and a whopping US$484 billion by 2030. That would represent a compound annual growth rate (CAGR) of 13% over the projected period.
“At Merck, we continue to enhance our oncology pipeline through strategic acquisitions that complement our current portfolio and advance breakthrough science to help address the needs of people with cancer worldwide,” said Dr. Dean Y. Li, President of Merck Research Laboratories. “This agreement reflects the creativity and commitments of scientists and clinical development teams at Harpoon.”
Shares of Merck have jumped 3.55% week-over-week as of close on Tuesday, January 9. Meanwhile, the healthcare stock has climbed 13% month-over-month. That has pushed Merck shares into positive territory in the year-over-year period.
