Merck KGaA Acquires SpringWorks Therapeutics for $3.9 Billion, Bolstering Rare Disease and Oncology Portfolio
German pharmaceutical giant Merck KGaA has announced the acquisition of Connecticut-based biotech firm SpringWorks Therapeutics for $3.9 billion, marking a significant expansion of its presence in the U.S. market and strengthening its position in rare diseases and oncology.
Deal Details and Strategic Implications
Merck KGaA will pay $47 per share for SpringWorks, representing a 26% premium based on the biotech's volume-weighted price on February 7, 2025, before initial speculation about the deal emerged. The transaction, which has been in negotiations for several months, is expected to close in the second half of 2025, subject to regulatory approvals and SpringWorks shareholder consent.
The acquisition aligns with Merck KGaA's strategy to position itself as a "globally diversified, innovation and technology powerhouse," according to CEO Belén Garijo. This deal represents the company's largest acquisition in the healthcare sector since its $17 billion buyout of Sigma-Aldrich in 2015.
SpringWorks' Assets and Pipeline
SpringWorks brings two FDA-approved drugs to Merck KGaA's portfolio:
- Ogsiveo: Approved for adults with progressing desmoid tumors, this drug generated $172 million in U.S. sales in 2024.
- Gomekli: Recently approved in February 2025 for adults and children with neurofibromatosis type 1 (NF1) who experience symptoms from plexiform neurofibromas.
The biotech's pipeline includes several promising candidates:
- Brimarafenib: A RAF dimer inhibitor being developed in collaboration with BeiGene for colorectal and pancreatic cancers.
- SW-682: A TEAD inhibitor in Phase 1 trials for Hippo-mutant solid tumors.
- SW-3431: A PP2A activator with plans for clinical trials this year.
Market Impact and Industry Trends
The SpringWorks acquisition is the first biotech buyout exceeding $1 billion since Johnson & Johnson's $14.6 billion purchase of Intra-Cellular Therapies in January 2025. This deal may signal a potential thaw in the M&A market, which has been relatively quiet due to economic uncertainties and market volatility.
For Merck KGaA, this acquisition provides an opportunity to rebound from recent clinical setbacks, including the failure of evobrutinib in multiple sclerosis trials and the termination of xevinapant studies in head and neck cancer. The addition of SpringWorks' approved products and pipeline candidates is expected to immediately contribute to revenue and enhance the company's competitive position in the lucrative rare disease and oncology markets.
References
- Merck KGaA Moves Ahead on SpringWorks Buy for $3.9B
The transaction is expected to close in the second half of 2025. With the deal, Merck KGaA is adding to its rare disease and oncology pipelines.
- Merck KGaA to buy biotech SpringWorks for $3.9B
The deal, which has been in the works for months, hands the German pharmaceutical company two approved drugs for rare tumors.
- Merck KGaA springs back into M&A game with $3.9B buyout of Pfizer spinout SpringWorks
Merck KGaA’s long courtship of rare disease specialist SpringWorks Therapeutics has come to fruition as the German drugmaker has bought out the Connecticut biopharma for an equity value of $3.9 billion.
- SpringWorks Surges on Potential $3.5B Merck KGaA Buyout
The transaction, which sources say could be agreed upon as soon as Monday, would price SpringWorks at $47 per share, totaling approximately $3.5 billion for the acquisition.
- Merck KGaA confirms late-stage talks with SpringWorks about $3.5B buyout
Merck KGaA’s protracted pursuit of SpringWorks Therapeutics may be nearing its endgame. The German drugmaker confirmed it is in late-stage talks about buying the rare cancer biopharma for around $47 a share.
Explore Further
What competitive advantages does Merck KGaA gain from integrating SpringWorks Therapeutics' pipeline into its portfolio?
How might Merck KGaA's acquisition of SpringWorks affect its competitive positioning in the rare disease and oncology markets?
What regulatory hurdles could impact the completion of Merck KGaA's acquisition of SpringWorks Therapeutics?
Are there any competitors pursuing similar acquisitions to strengthen their rare disease and oncology portfolios?
What are the key terms of Merck KGaA's acquisition deal for SpringWorks Therapeutics?