On November 21, Merck & Co., Inc. announced that it was acquiring Caraway Therapeutics, a biotechnology company based in Cambridge, Massachusetts. The addition of Caraway Therapeutics will broaden Merck’s preclinical pipeline with a selection of programs aimed at Parkinson’s disease and beyond.
Merck, through a subsidiary, will buy Caraway for a total potential consideration of up to $610 million, including an undisclosed upfront payment as well as contingent milestone payments. The upfront payment will be expensed by Merck in the fourth quarter of 2023 and included in non-GAAP results.
Caraway Therapeutics’ approach leverages genetic data and unique biological understanding to develop proprietary small molecules that activate cellular clearance and recycling processes, accelerating the clearance of accumulated toxic materials and defective cellular components. Originally named Rheostat Therapeutics, the company was established at SV Health Investors and the Dementia Discovery Fund. In 2018, it received $23 million in series A funding.
Merck & Co., Inc., known as MSD outside the United States and Canada, is an American multinational pharmaceutical company headquartered in Rahway, New Jersey. Merck is focused on the discovery, development, manufacturing and marketing of prescription medicines, biologic therapies, vaccines and animal health products.
According to data captured in the LevinPro HC database, this transaction represents the 146th Biotechnology acquisition of the year. This deal is Merck’s second acquisition of the year. In April, the company purchased Prometheus Biosciences for $10.8 billion. More information on the transaction can be found on LevinPro HC.
