Merck KGaA in advanced talks to acquire SpringWorks Therapeutics

GERMANY – Merck KGaA, the German healthcare and technology conglomerate, is reportedly in advanced discussions to acquire U.S.-based biotech firm SpringWorks Therapeutics.

SpringWorks specializes in developing treatments for cancer and rare diseases. The potential acquisition aligns with Merck’s strategy to bolster its oncology portfolio.

SpringWorks, which went public in 2019, has a market valuation approaching US $4 billion. The company’s pipeline includes a monotherapy approved in the United States for desmoid tumors, a type of rare growth that arises from connective tissue.

This acquisition would represent one of Merck’s most significant pharmaceutical deals in recent years, enhancing its position in the oncology sector.

The discussions are at an advanced stage, with a potential agreement anticipated in the coming weeks.

However, sources caution that negotiations are ongoing, and there is a possibility that another bidder could emerge. Both Merck and SpringWorks have declined to comment on the matter.

This move comes amid a resurgence in deal-making within the U.S. healthcare sector, following a slowdown in 2024.

Notably, in January, Johnson & Johnson agreed to acquire Intra-Cellular Therapeutics for approximately US $14.6 billion, indicating a renewed appetite for significant investments in the biotech industry.

For Merck, the acquisition of SpringWorks would serve to strengthen its cancer treatment pipeline, especially after recent setbacks in late-stage drug trials, including the discontinuation of the development of xevinapant for head and neck cancer.

The company has expressed a commitment to exploring opportunities that support its business growth and strategic positioning as a leading science and technology entity.