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Highlights

  • Merck KGaA to acquire SpringWorks for $47 per share in cash, with an equity value of approximately $3.9 billion.

  • Strategic acquisition to accelerate Merck KGaA’s revenue growth, especially in rare tumor treatments, complementing its existing portfolio.

  • SpringWorks’ FDA-approved therapies for rare tumors, including desmoid tumors and neurofibromatosis type 1, align with Merck KGaA’s healthcare strategy.

Merck KGaA, Darmstadt, Germany (DAX:MRK), a leading science and technology company, has announced a definitive agreement to acquire SpringWorks Therapeutics, Inc. (Nasdaq:SWTX), a biopharmaceutical company focused on rare diseases and cancer. The deal, valued at approximately $3.9 billion, will see Merck KGaA purchase SpringWorks for $47 per share in cash, representing a premium of 26% over SpringWorks' unaffected 20-day volume-weighted average price. The transaction is expected to close in the second half of 2025, pending regulatory and shareholder approvals.

Strengthening Rare Disease and Cancer Portfolio

This acquisition is fully aligned with Merck KGaA’s strategic priorities, outlined during its Capital Markets Day in October 2024. The company is focused on enhancing its healthcare business by pursuing high-quality acquisitions and in-licensing agreements, with a particular emphasis on rare diseases and cancer treatments. SpringWorks Therapeutics, with its rare tumor portfolio, offers Merck KGaA an immediate opportunity to expand its footprint in the rare disease space, particularly in treatments for desmoid tumors and neurofibromatosis type 1 (NF1), which are areas of high unmet medical need.

SpringWorks’ rare tumor portfolio includes its FDA-approved therapies, OGSIVEO® (nirogacestat), for adults with desmoid tumors, and GOMEKLI™ (mirdametinib), the first and only approved therapy for children and adults with NF1-PN (plexiform neurofibromas). These treatments align with Merck KGaA’s ongoing focus on rare tumor indications and complement its existing pipeline, such as its collaboration with Abbisko Therapeutics on the investigational therapy pimicotinib for tenosynovial giant cell tumor (TGCT).

A Strategic Deal for Sustainable Growth

Merck KGaA’s decision to acquire SpringWorks is expected to result in immediate revenue contributions, and the deal is anticipated to be accretive to earnings per share in 2027. The transaction will be funded using Merck KGaA’s available cash and new debt, maintaining the company’s strong investment-grade credit rating. The acquisition will also bolster Merck KGaA’s presence in the U.S. market, the largest pharmaceutical market in the world.