Merck will pay $200 per share for the California-based biotechnology company that specializes in treatments for autoimmune diseases, representing a 75.4% premium to Prometheus’ last closing price.
Shares of Prometheus were trading at $194.49 before the bell on Monday.
“This is allowing us to move into immunology in a strong way and will allow us sustainable growth, we think, well into the 2030s given the long patent life,” Merck Chief Executive Robert Davis said in an interview.
Davis said the Prometheus drug, PRA023, being developed to treat two inflammatory bowel diseases (IBD) – ulcerative colitis and Crohn’s disease – and other autoimmune conditions, could be a multibillion-dollar seller for Merck. He said the recent release of encouraging mid-stage trial results drove Merck to pounce.
“We’ve been watching their clinical development program for a while,” Davis said.
The likelihood of a counter-bid is slim as other large…
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