Merck to take $10.3 billion R&D charge for Prometheus deal this year

Prometheus Biosciences

17/04/2023 14:59

April 17 (Reuters) - Merck & Co  MRK.N  expects a
research-and-development charge of about $10.3 billion, or $4
per share, this year as the drugmaker accounts its deal for
Prometheus Biosciences Inc  RXDX.O  as an asset acquisition, CFO
Caroline Litchfield said.  
    The deal is expected to hit Merck's profit by 25 cents per
share in the first 12 months, Litchfield said in an investor
conference call on Monday.     
        The deal is expected to close in the third quarter.
  
    Merck on Sunday agreed to buy Prometheus for about $10.8
billion to build up its presence in immunology. Net of
Prometheus' cash balance, the price paid comes to $10.3 billion.

 (Reporting by Raghav Mahobe and Leroy Leo in Bengaluru; Editing
by Devika Syammnath)
 ((Raghav.Mahobe@thomsonreuters.com;))