Merck treats its migraine with half headache pill

Prometheus Biosciences

17/04/2023 15:37

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Aimee Donnellan
       LONDON, April 17 (Reuters Breakingviews) - With its star
cancer remedy close to going off patent, the pharma giant has
shifted into digestive disease with an $11 bln bid for
Prometheus. If the biotech’s drugs are approved, Merck will have
a slice of a $49 bln sector. If not, the patent cliff will be
even more precipitous.
    Full view will be published shortly.
    Follow @aimeedonnellan on Twitter
    
    CONTEXT NEWS
    Merck & Co said on April 16 it will buy Prometheus
Biosciences for about $10.8 billion, paying $200 a share in
cash, a 75% premium to the target’s previous closing price.
Prometheus specializes in treatments for autoimmune diseases. 
    Merck had been in talks to buy cancer-focused biotech
Seagen, the Wall Street Journal reported in 2022. Seagen sold
itself for $43 billion to Pfizer in March 2023.
    Keytruda, a cancer treatment that made up 35% of Merck’s
revenue in 2022, is due to lose its market exclusivity in 2028.

 (Editing by John Foley and Sharon Lam)
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