Pharmaceutical giant Merck & Co has announced the acquisition of Prometheus Biosciences Inc for a reported $10.8 billion, marking the latest step in Merck's ongoing efforts to strengthen its presence in immunology.
Reuters reports that Merck will pay $200 per share for the biotech company in the deal, which is expected to close by the third quarter of this year. This represents a 75% premium over the company's closing share price of $114.01 on Friday, April 14.
Merck Moves to Acquire BioTech Firm Prometheus
Prometheus Biosciences is a clinical-stage biotech company that develops products to treat immunological diseases.
Its lead candidate, PRA023, is a monoclonal antibody directed against TNF-like ligand 1A (TL1A), linked to intestinal inflammation and fibrosis.
The company is developing PRA023 to treat immune-mediated diseases such as ulcerative colitis, Crohn's disease, and other autoimmune conditions.
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Reuters tells us that Merck's acquisition is a significant step forward for the company, which has been looking for ways to secure revenue streams as patents for its cancer immunotherapy Keytruda begin to expire.
Merck's Increased Presence in Immunology
The agreement will expand Merck's presence in the immunology field and help to meet the needs of patients suffering from immune disorders.
Merck's CEO, Robert Davis, notes in a statement that the acquisition will diversify the company's portfolio and is an important building block as the company strengthens its sustainable innovation engine to drive growth over the next decade.
According to Prometheus Biosciences CEO Mark McKenna, the agreement with Merck will allow the company to maximize the potential of PRA023 while continuing to apply its technology and expertise to fuel further discoveries to address the needs of patients with immune disorders.
The December 2022 announcement by Prometheus Biosciences of positive results from the ARTEMIS-UC Phase 2 study and the APOLLO-CD Phase 2A study evaluating PRA023's safety and efficacy in patients with moderate to severely active ulcerative colitis and Crohn's disease, respectively, has added to the excitement surrounding the acquisition.
The acquisition represents a significant step forward for Merck as it seeks to strengthen its position in the immunology market and ensure long-term revenue growth.
The move also represents a significant vote of confidence in Prometheus Biosciences and its groundbreaking work in developing precision medicine approaches for treating immune-mediated diseases.
In Other News
Tech Times reports that Harvard Medical School and National Cheng Kung University in Taiwan have developed an artificial intelligence (AI) model that predicts the aggressiveness of colon cancer, the likelihood of survival, and the best treatment for each patient.
By analyzing images of tumor samples, the Multi-omics Multi-cohort Assessment (MOMA) model accurately predicts the severity of colorectal malignancies, the likelihood of a patient's survival, and the most effective treatment plan.
This tool can be extremely useful in assisting clinicians and patients in managing this elusive disease, which frequently exhibits erratic behavior even among those with comparable disease characteristics who receive equal treatment.
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