HQ Team
April 29, 2025: Germany’s Merck KGaA, is set to acquire biopharmaceutical company SpringWorks Therapeutics Inc. for $3.9 billion in cash to add rare tumour therapies to its portfolio.
“The agreed acquisition of SpringWorks is a major step in our active portfolio strategy to position Merck as a globally diversified, innovation and technology powerhouse,” said Belén Garijo, Chair of the Executive Board and CEO of Merck.
“For our Healthcare sector, it sharpens the focus on rare tumours, accelerates growth, and strengthens our presence in the US.
“Beyond this planned transaction, we will continue to explore M&A opportunities across our three complementary business sectors, always with a focus on strategic fit, financial robustness, and long-term value creation.”
Cash and debt
The purchase price of $47 per share in cash represents an equity value of approximately $3.9 billion based on SpringWorks’ cash balance as of December 31, 2024, according to a statement.
The planned transaction fully aligns with the business development of Merck’s healthcare business to continue to pursue external innovation via in-licensing of high-quality compounds at various stages of development and focused acquisitions that promise early value creation, according to the statement.
It also fits with the strategic objective of strengthening Merck’s Healthcare presence in the United States, the world’s largest pharmaceutical market.
The acquisition will be funded with available cash and new debt. Beyond this, Merck will retain the ability to pursue larger transactions and continue to evaluate opportunities across its three sectors, with Life Science a priority.
Rare tumours
SpringWorks’ rare tumour portfolio, including a therapy for adults with desmoid tumours and the first and only approved therapy for adults and children with neurofibromatosis type 1 (NF1) who have symptomatic plexiform neurofibromas (PN) not amenable to complete resection, “will accelerate immediate and sustainable revenue growth for Merck.”
SpringWorks’ portfolio complements Merck’s progress in rare tumours, with Merck recently exercising an option for worldwide commercialization rights for pimicotinib, an investigational therapy developed by Abbisko Therapeutics Co., Ltd. for patients with tenosynovial giant cell tumour.
“We have the unique opportunity with SpringWorks to establish a leadership position in rare tumours and build a strong foundation for further investments in this area, where a large unmet medical need exists,” said Peter Guenter, member of the Executive Board and CEO of Healthcare at Merck.
“Together, Merck and SpringWorks are the perfect combination to improve outcomes for patients with rare tumours and bring therapeutic innovations to more patients worldwide while building on and reinforcing the early success of SpringWorks in the United States.”
Desmoid tumours
The business combination will contribute to Merck’s revenues and is expected to be accretive to Merck’s earnings per share by 2027.
SpringWorks’ US Food and Drug Administration (FDA)-approved therapy, Ogsiveo (nirogacestat), is a systemic standard of care for the treatment of adult patients with progressing desmoid tumours who require systemic treatment.
The Stamford, Connecticut-headquartered SpringWorks’ marketing authorisation application for nirogacestat is under review with the European Medicines Agency, with a Committee for Medicinal Products for Human Use decision expected in the second quarter of 2025.
Advancing pipeline
Merck will also get access to Gomekli (mirdametinib) — the first and only FDA-approved therapy for the treatment of adult and pediatric patients 2 years of age and older with NF1-PN not amenable to complete resection.
The marketing authorisation application for mirdametinib has been validated by the European Medicines Agency with a potential approval in 2025.
SpringWorks is also advancing its pipeline with additional programs in other tumour settings that are currently underserved.
