Merck KGaA In $3.9 Billion Deal To Buy U.S. Biotech Firm SpringWorks

German healthcare and materials group Merck KGaA announced Monday that it has agreed to acquire U.S. biotech company SpringWorks Therapeutics for an equity value of $3.9 billion, Ludwig Burger reported for Reuters.

Merck said the deal is expected to be accretive to its adjusted earnings per share by 2027. I Photo: Merck

Merck, based in Darmstadt, Germany, said the purchase price of $47 per share in cash equates to an enterprise value of $3.4 billion (3.0 billion euros) after adjusting for SpringWorks’ cash holdings.

The family-controlled company had confirmed last week that the two sides were in late-stage discussions over a bid around that price.

Merck said the deal, funded through a combination of cash reserves and new debt, is expected to be accretive to its adjusted earnings per share by 2027.

Despite the acquisition, Merck stated it retains the capacity to pursue larger transactions. SpringWorks, headquartered in Stamford, Connecticut, focuses on therapies for cancer and rare tumors.

It currently markets two products: Ogsiveo, which generated $172 million in 2024 sales treating desmoid tumors, and Gomekli, approved in February for NF1-PN, a condition involving nerve sheath tumors.