DARMSTADT (dpa-AFX) - The Darmstadt-based Merck Group has completed its largest pharmaceutical acquisition in nearly 20 years. The purchase of U.S. cancer specialist Springworks Therapeutics for around 3 billion euros is now finalized, according to the DAX-listed company. With this acquisition, Merck aims to build a business centered on treatments for rare tumors, an area where the company sees a significant therapeutic gap.
"Many of those affected are still young and face a long, uncertain treatment journey with only limited therapeutic options ahead," said Danny Bar-Zohar, head of Merck's pharmaceuticals division.
Lucrative Market for Rare Diseases
Springworks already has a medication approved in the U.S. for the treatment of progressive soft tissue tumors, as well as for a condition involving benign tumors on the skin or nerves. Both therapies could soon receive the green light in the EU as well.
Merck CEO Belén Garijo described the acquisition as a landmark move. Both Springworks therapies have the potential to become blockbuster drugs, meaning each could generate at least one billion dollars in annual sales for Merck, Garijo told the German Press Agency.
The acquisition of Springworks is a "transformative step," the executive stated. With it, Merck is expanding its U.S. business, focusing more on rare diseases, and accelerating growth. At the same time, Garijo did not rule out further acquisitions, particularly in the area of products for pharmaceutical research and drug manufacturing.
Merck Under Pressure After Drug Setbacks
Merck's pharmaceutical division, which includes drugs for cancer, infertility, and multiple sclerosis, has posted solid growth recently. However, the company faces pressure to bring new products to market. Several promising candidates that were expected to bring billions into Merck's coffers have failed in clinical trials.
The acquisition of Springworks, Merck's largest in the pharma sector since buying Swiss company Serono in 2007 for 10.3 billion euros, is expected to immediately boost Merck's revenues. The last major deal Merck completed was the 2019 acquisition of U.S. semiconductor supplier Versum Materials, valued at around 5.8 billion euros./als/tav/DP/jha
