Three Large Biotech Transactions Announced

Three Large Biotech Transactions Announced

On Monday, January 8, there was a flurry of activity in the Biotechnology sector. Three large, publicly-traded companies announced acquisitions in the space, representing the third, fourth and fifth Biotechnology transaction of 2024, respectively. Last year, there were 155 Biotechnology deals announced, according to data captured in the LevinPro HC database. Merck acquires Harpoon Therapeutics: Merck announced the acquisition of Harpoon Therapeutics through a subsidiary for an approximate total equity value of $680 million.  Harpoon Therapeutics is a clinical-stage immunotherapy company developing a novel class of T-cell engagers designed to harness the power of the body’s immune... Read More »
Merck Buys Caraway Therapeutics

Merck Buys Caraway Therapeutics

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... Read More »
Merck Buys Caraway Therapeutics

Merck Acquires Prometheus Biosciences for $10.8 Billion

Merck & Co., Inc. announced on April 17 that it will acquire, through a subsidiary, Prometheus Biosciences for $200.00 per share for a total equity value of approximately $10.8 billion. The transaction is expected to close in the third quarter of 2023. Morgan Stanley & Co. LLC acted as financial advisor to Merck and Paul, Weiss, Rifkind, Wharton & Garrison LLP as its legal advisors. Centerview Partners LLC and Goldman Sachs acted as financial advisors to Prometheus and Latham & Watkins LLP as the company’s legal advisor. Prometheus Biosciences is a clinical-stage biotechnology company pioneering a precision medicine approach for the discovery, development and... Read More »
Organon Hits the Ground Running

Organon Hits the Ground Running

Early in March 2020, Merck & Co., Inc. (NYSE: MRK) announced the spin-off of a new company focused on women’s health. The new company, Organon & Co., will have a portfolio of more than 60 trusted medicines that address an entire spectrum of conditions that women face. Organon is expected to have a global footprint with approximately 10,000 employees with headquarters located in Jersey City, New Jersey. If the name rings any bell at all, it’s because Organon was originally a subsidiary of Schering-Plough Corporation, which Merck acquired in 2009 for a whopping $41 billion. Schering-Plough actually bought Organon in 2007 from Akzo Nobel (OTCMKTS: AZKOY) for $15.8 billion, according... Read More »
Merck Boosts Autoimmune Portfolio With New Deal

Merck Boosts Autoimmune Portfolio With New Deal

The pharmaceutical giant Merck & Co., Inc. (NYSE: MRK) is back with a new deal, acquiring Pandion Therapeutics, Inc. (NASDAQ: PAND) for $1.85 billion, or $60 per share in cash, a 134% premium to the prior day’s closing price. Pandion Therapeutics is developing novel therapeutics designed to address the unmet needs of patients living with autoimmune diseases. Pandion’s TALON (Therapeutic Autoimmune reguLatOry proteiN) drug design and discovery platform enable the company to create a pipeline of product candidates using immunomodulatory effector modules.  In 2020, the company generated approximately $10.5 million in revenue, but reported a loss in EBITDA of approximately $43.2 million. ... Read More »