Merck strengthens pharmaceutical business with acquisition of cancer specialist SpringWorks

Darmstadt. Two and a half months after confirming initial exploratory talks, Darmstadt-based Merck KGaA has reached its goal: It has acquired the Nasdaq-listed drug developer SpringWorks Therapeutics for the equivalent of €3.0 billion in cash.

At least, that's the agreement with the US company's management, which Merck announced earlier this week. Now SpringWorks shareholders must accept the offer of $47 per share.

The transaction is expected to close in the second half of 2025. It will be financed with existing cash and new debt, according to the company. The current offer represents a 26 percent premium to the 20-day average price of SpringWorks shares before initial speculation about a possible merger became public.

Two approved innovations

With this acquisition, Merck is revamping its drug portfolio. The US company, based in Stamford, Connecticut, develops novel tumor drugs and already has two approved innovations: ^Ogsiveo® (nirogacestat) is an oral gamma-secretase inhibitor for the systemic treatment of progressive desmoid tumors.

Merck claims the mechanism of action is "first-in-class." Market approval by the US FDA was granted in November 2023. An application for approval is pending with the EU agency EMA. According to Merck, a decision is "expected in the second quarter of 2025."

The second SpringWorks product with regulatory approval is the oral MEK inhibitor mirdametinib (Gomekli™) for neurofibromatosis (type 1) in patients (2 years of age and older) with symptomatic, non-surgical plexiform neurofibromas.

For this indication, Gomekli™ is the "first and only FDA-approved therapy" to date; the US agency's approval came at the end of February of this year. This drug is also already in the European approval process. "Approval could be granted in 2025," Merck hopes.

First profit contribution 2027

In 2024, SpringWorks generated revenue of $191.6 million (previous year: $5.5 million). The company posted a net loss of $258 million (previous year: -$325 million). Cash reserves totaled just under $462 million at the end of the reporting year.

According to information from Darmstadt, the new acquisition is expected to make a positive contribution to earnings per Merck share (before exceptionals) for the first time in 2027. (cw)