Merck KGaA to acquire SpringWorks Therapeutics in US $3.9 billion deal​

GERMANY – ​German pharmaceutical giant Merck KGaA has announced a definitive agreement to acquire U.S.-based biopharmaceutical company SpringWorks Therapeutics for approximately US $3.9 billion in cash. ​

Under the terms of the agreement, Merck KGaA will pay US $47 per share, representing a 26% premium over SpringWorks’ 20-day volume-weighted average price as of February 7, 2025.

The transaction, which equates to an enterprise value of US $3.4 billion after accounting for SpringWorks’ cash holdings, is expected to close in the second half of 2025, subject to customary closing conditions, including shareholder and regulatory approvals. ​

SpringWorks Therapeutics, headquartered in Stamford, Connecticut, specializes in developing therapies for rare diseases and cancer.

The company’s portfolio includes two FDA-approved treatments: Ogsiveo (nirogacestat) for desmoid tumors and Gomekli for neurofibromatosis type 1-associated plexiform neurofibromas. ​

Merck KGaA views the acquisition as a strategic move to strengthen its oncology pipeline, particularly in the area of rare tumors.

“We have the unique opportunity with SpringWorks to establish a leadership position in rare tumors and build a strong foundation for further investments in this area,” said Peter Guenter, CEO of Merck’s Healthcare business. ​

The deal is expected to be immediately accretive to Merck’s revenues and to contribute to earnings per share starting in 2027. It will be financed through a combination of available cash and new debt.

SpringWorks CEO Saqib Islam expressed optimism about the merger, stating, “By joining forces with Merck KGaA, we are not only creating significant, immediate value for our stakeholders, but we will also be able to leverage their resources and expertise to build a brighter future for the patient communities we seek to serve.”

This acquisition marks one of Merck KGaA’s most significant deals since its US $17 billion purchase of Sigma-Aldrich in 2015 and aligns with the company’s strategy to expand its presence in the U.S. pharmaceutical market and enhance its portfolio in the oncology sector. ​

The transaction is anticipated to close in the second half of 2025, pending shareholder and regulatory approvals. ​