Drug maker Merck & Co. Inc. announced Sunday a deal to acquire Prometheus Biosciences Inc. for $200 a share, or about $10.8 billion.
Prometheus is a clinical-stage biotechnology company focusing on autoimmune treatments, such as PRA023, a treatment under development for illnesses such as ulcerative colitis and Crohn’s disease.
“The agreement with Prometheus will accelerate our growing presence in immunology where there remains substantial unmet patient need,” Merck Chief Executive Robert M. Davis said in a statement. “This transaction adds diversity to our overall portfolio and is an important building block as we strengthen the sustainable innovation engine that will drive our growth well into the next decade.”
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The deal is expected to close in the third quarter of 2023.
Prometheus RXDX, +1.02% had a market cap of about $5.42 billion as of Friday’s close. Its stock is up 3.7% year to date, but has skyrocketed 225% over the past 12 months, with much of the gains coming after PRA023 advanced to Phase 3 clinical trials in December.
Merck shares MRK, -0.23% are up 3.9% year to date, and up 33% over the past year.
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