Merck acquires Prometheus Biosciences, strengthens immunology pipeline
pharmafile | April 17, 2023 | News story | Sales and Marketing |
Merck (known as MSD outside of the US and Canada) has announced that it, through a subsidiary, has agreed to acquire Prometheus Biosciences for $200 per share or a total equity value of approximately $10.8bn.
Prometheus is a clinical-stage biotech company with a focus on its precision medicine approach towards the discovery, development and commercialisation of novel therapeutics and diagnostic products to treat immune-mediated diseases. Its lead candidate is PRA023, a humanised monoclonal antibody (mAb) directed to tumour necrosis factor (TNF)-like ligand 1A (TL1A), which is associated with both intestinal inflammation and fibrosis.
Merck, through a subsidiary, is expected to acquire all outstanding shares of Prometheus, with the transaction expected to close in the third quarter of 2023.
Robert M Davis, chairman and CEO at Merck, commented: “At Merck, we are committed to delivering on our purpose to save and improve lives and continue to identify and secure opportunities where compelling science and value creation align. The agreement with Prometheus will accelerate our growing presence in immunology where there remains substantial unmet patient need. 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.”
Mark McKenna, chairman and CEO of Prometheus Biosciences, added: “Prometheus was established to revolutionise the treatment of immune-mediated diseases through the application of a powerful precision medicine approach. This agreement with Merck, a leader in biopharmaceutical research and development, allows Prometheus to maximise the potential for PRA023, while continuing to apply our technology and expertise to fuel further discoveries to address the needs of patients with immune disorders.”
Dr Dean Y Li, president of Merch Research Laboratories, stated: “By applying a portfolio of powerful analytic tools to a comprehensive collection of IBD samples, Prometheus identified important disease insights that have now yielded a promising late-stage candidate. I look forward to working with the talented Prometheus team to establish a new paradigm of precision treatment for immune diseases.”
Betsy Goodfellow
