German healthcare firm Merck is in advanced talks to acquire SpringWorks Therapeutics, a US-based drugmaker, specialising in cancer and rare diseases treatments.
Negotiations between the parties are progress and no binding agreement has been signed yet. Merck has confirmed the talks, but there is no guarantee the deal will go through, Reuters reported.
If talks succeed, an agreement may be announced in the coming weeks, sources told the news agency. Three anonymous sources told Reuters that the discussions are confidential but did not reveal the specific terms under negotiation.
SpringWorks Therapeutics, based in Stamford, Connecticut, went public in 2019.
The biotech firm develops drugs for rare tumours and uterine cancer. Its monotherapy, Ogsiveo, for desmoid tumours has already been approved in the US.
The drugmaker is also expecting US Food and Drug Administration (FDA) approval for its MEK inhibitor mirdametinib, later this month. Mirdametinib is being developed to treat neurofibromatosis type-1, a rare genetic disorder.
If approved, mirdametinib would become SpringWorks’ second commercial medicine, following Ogsiveo.
It would also be the first FDA-approved therapy for both adults and children with neurofibromatosis type 1 and symptomatic plexiform neurofibromas (PN).
SpringWorks’ acquisition would be one of Merck’s largest pharma deals in recent years, strengthening its cancer treatment pipeline.
Merck has faced recent delays in late-stage drug trials, including halting the development of cancer drug xevinapant and a failed trial for the multiple sclerosis drug evobrutinib in December 2023.
The German healthcare and technology group’s latest quarterly earnings showed a 12% increase in adjusted earnings, driven by reduced drug development spending and a recovery in demand for its speciality materials.
Merck has a history of major acquisitions. In 2015, it bought US lab equipment supplier Sigma-Aldrich for $17bn. In 2019, the company acquired US electronics materials maker Versum for €5.8bn.
