Merck KGaA to Acquire SpringWorks for $3.4 Billion

Rare Daily Staff

Merck KGaA agreed to acquire rare cancer therapeutics developer SpringWorks Therapeutics for $47 per share in cash or approximately $3.9 billion.

The purchase price represents $3.4 billion in enterprise value based on SpringWorks’ cash balance as of December 31, 2024. The transaction represents a 26 percent premium to SpringWorks’ 20-day volume-weighted average price of $37.38 on February 7, 2025, the day prior to the first market speculation of a potential transaction between the two companies.

Merck KGaA said the agreed acquisition “is a major step” in its active portfolio strategy to position the company as “a globally diversified, innovation and technology powerhouse.” It also sharpens the company’s focus on rare tumors, accelerates growth, and strengthens its presence in the United States.

The transaction reflects Merck KGaA’s previously outlined plans 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.

Upon closing, the business combination will immediately contribute to Merck KGaA’s revenues and is expected to be accretive to its earnings per share in 2027. The acquisition will be funded through a combination of available cash and new debt.

SpringWorks’ rare tumor portfolio includes Ogsiveo, a marketed first-in-class, systemic standard-of-care therapy for adults with desmoid tumors, and Gomekli, the first and only approved therapy for adults and children with neurofibromatosis type 1 who have symptomatic plexiform neurofibromas not amenable to complete resection.

SpringWorks’ portfolio complements Merck KGaA’s progress in rare tumors. Merck KGaA recently exercised an option for worldwide commercialization rights for pimicotinib, an investigational therapy developed by Abbisko Therapeutics for patients with tenosynovial giant cell tumor.

The boards of both companies approved the transaction, which is expected to close in the second half of 2025, subject to satisfaction of customary closing conditions, including the approval of SpringWorks’ shareholders and receipt of required regulatory approvals.

“We have the unique opportunity with SpringWorks to establish a leadership position in rare tumors 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 KGaA.