U.S. pharmaceutical giant Merck & Co. (MRK) is buying Prometheus Biosciences (RXDX) for $10.8 billion U.S. as it tries to boost its work in the field of immunology.
Merck has agreed to pay $200 U.S. per share for Prometheus, which specializes in products for the treatment of immunological diseases.
The purchase price represents a 75% premium to the $114.01 U.S. closing price of Prometheus Biosciences’ stock on April 14. Prometheus has a market capitalization of $5.42 billion U.S.
Merck has been looking for deals to help it grow its revenue as a loss of the patent protections on its popular cancer medication Keytruda begin to expire.
Merck has also struggled with steep declines in sales of its Covid-19 antiviral treatment.
The deal to acquire Prometheus is expected to close in the third quarter of this year.
Merck’s stock has risen 34% in the past 12 months to $115.31 U.S. per share. Prometheus Biosciences’ stock has gained 263% over the last year to trade at $114.01 U.S. a share.
