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Merck to buy Prometheus Biosciences for about $11 billion

The Merck brand on the Merck campus in Rahway, New Jersey.

Brendan McDermid | Reuters

Merck has agreed to accumulate Prometheus Biosciences for about $10.8 billion to bolster the corporate’s presence in immunology, the businesses mentioned on Sunday.

The joint assertion mentioned that Merck, by way of one in all its subsidiaries, can pay $200 per share for the biotechnology firm that focuses on merchandise for the therapy of immunological ailments. That represents a 75% premium to the $114.01 closing worth for Prometheus shares on Friday.

Prometheus had a market capitalization of $5.42 billion at Friday’s shut.

Merck has been searching for offers to guard itself from eventual income loss as patents on its most cancers immunotherapy Keytruda start to run out in the direction of the tip of the last decade.

“The settlement with Prometheus will speed up our rising presence in immunology the place there stays substantial unmet affected person want. This transaction provides variety to our general portfolio,” mentioned Merck Chairman and Chief Govt Robert Davis.

The deal, which was first reported by the Wall Road Journal, is anticipated to shut within the third quarter of the yr, the businesses mentioned.

Merck in February forecasted 2023 earnings under Wall Road estimates and an anticipated steep decline in gross sales of its Covid-19 antiviral therapy.