The companies have announced that Denmark’s Genmab will acquire Merus NV (a Dutch biotechnology firm listed on the Nasdaq) in an $8 billion all-cash deal.
This deal represents a major expansion in Genmab’s portfolio of oncology products, as it adds a promising cancer treatment candidate at a late stage to the pipeline.
According to the agreement’s terms, Genmab is paying $97.00 for each share. This represents a premium of 41% over Merus’ closing price on September 26, which was $68.89, and 44% over its 30-day average volume-weighted price, $67.42.
The boards of both companies have approved this transaction unanimously.
This acquisition will be financed by a combination of cash and non-convertible loans totaling $5.5 billion.
Genmab secured funding from Morgan Stanley Senior Funding Inc. to ensure that the deal was not subjected to any financing conditions.
Genmab hopes to improve its competitive position in the biotechnology industry with this acquisition.
In a statement, the companies stated that “Following completion of the transaction Genmab’s proprietary programs are expected to lead multiple new drug launch by 2027.”
Petosemtamab is now part of Genmab’s pipeline for late-stage drugs
Merus’ experimental drug, petosemtamab (a bispecific anti-EGFRxLGR5 antibody), is at the heart of this deal. It is being tested currently in two Phase 3-trials for head and neck cancer.
In 2026, interim results will be expected.
Petosemtamab has been granted two Breakthrough Therapy Designations by the US Food and Drug Administration, for both first and second line indications.
The data presented at this year’s American Society for Clinical Oncology conference showed that response rates were high and the outcomes of progression-free life expectancy was better than the standard care.
Genmab has said that it expects to launch the drug in 2027 if positive results from trials and regulatory approvals are achieved.
By 2029, the company expects to generate sales of at least one billion dollars annually. There is also potential for future revenues in multiples of billions.
The strategic importance of the transaction
Genmab CEO Jan van de Winkel said that the acquisition was in line with Genmab’s strategy.
“Petosemtamab could be a transformative therapy for head and neck patients.” We are confident that we will be able to unlock the promise of this drug, based on our track record for development and commercialization.
Bill Lundberg, Merus’ chief executive officer, welcomed the agreement. He cited the shared commitment of the two companies to innovation in antibody therapies.
He said: “We think Genmab’s vision and expertise will help petosemtamab to be used in head and neck cancers that are recurrent or metastatic, and even beyond.”
Genmab’s goal is to expand the use of petosemtamab in earlier treatment lines, while taking advantage of its expertise at late stages and commercial infrastructure around the world.
Analysts believe the acquisition will accelerate the transformation of the company into a global leader in biotechnology, ensuring a sustainable growth for the rest of the decade.
The post Genmab acquires Dutch biotech Merus for $8B to expand cancer pipeline could be updated as new information unfolds
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