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2023: Merck bought Prometheus Biosciences for $10.8 billion
On April 16, 2023, the pharmaceutical company Merck announced the acquisition of the manufacturer of drugs for autoimmune diseases Prometheus Biosciences for $10.8 billion. Thanks to the deal, the buyer will receive a promising experimental drug for the treatment of ulcerative colitis and Crohn's disease and will increase its presence in the field of immunology.
Merck will pay $200 per share of Prometheus Biosciences, which is 75.4% more than the California biotech company's quotation rate the day before the announcement of its sale. Taking into account the closing of trading in Prometheus Biosciences shares on April 14, 2023 at $114.01 per paper, it turns out that a company with a capitalization of $5.4 billion a pharmaceutical giant intends to buy at a price of twice as much - $10.8 billion.
The biotechnology company Prometheus Biosciences was founded in 2016 and is developing innovative drugs for the treatment of immune-mediated diseases such as ulcerative colitis, Crohn's disease and other autoimmune disorders. As of April 17, 2023, the company has an Prometheus360 precision medicine platform - an analytical product based on machine learning with one of the world's largest bioinformatics databases and a prototype of the drug PRA023.
Under the terms of the agreement, Merck will acquire all outstanding shares of Prometheus Biosciences through a subsidiary. Closing a proposed deal would be subject to a number of conditions, including antitrust requirements. The process is expected to be completed in the third quarter of 2023. Morgan Stanley acted as financial advisor to Merck in that deal, and Paul, Weiss, Rifkind, Wharton & Garrison as its legal advisers. Prometheus Biosciences was served as a financial adviser by Centerview Partners and Goldman Sachs, and as a legal Latham & Watkins,
According to experts from CNBC, Merck decided to rely on immunology, as 2028 is approaching, in which the patent protection of the drug from cancer Keytruda will cease to operate, sales of which accounted for almost half of the income - $21 billion out of $59.3 billion in 2022.[1]
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