Merck KGaA, the German biopharma giant, is in advanced discussions to acquire SpringWorks Therapeutics, a Connecticut-based company specializing in cancer and rare disease treatments. The news, first reported by Reuters, comes as SpringWorks awaits an important FDA approval decision on its MEK inhibitor, mirdametinib, expected later this month.
The potential acquisition is significant, as SpringWorks is valued at over $4 billion following a 34% surge in its share price after the news broke. Analysts have pointed out the strategic value of SpringWorks, especially with its desmoid tumor drug, Ogsiveo, already launched and mirdametinib poised to become a key therapy for neurofibromatosis type 1 (NF1).
If mirdametinib is approved by the FDA, it will compete with AstraZeneca’s Koselugo in the U.S. market. Industry analysts suggest both of SpringWorks’ lead products could each become billion-dollar blockbusters at peak sales.
While Merck KGaA has confirmed the ongoing acquisition talks, both companies have cautioned that a deal is not yet finalized. The merger, if completed, would add to the growing trend of significant M&A activity in the biopharma sector, with other recent deals including Johnson & Johnson’s $14.6 billion acquisition of Intra-Cellular Therapies and Bain Capital’s $3.3 billion acquisition of Mitsubishi Tanabe Pharma.
As SpringWorks navigates these high-stakes regulatory and business developments, the potential acquisition by Merck KGaA could signal the next phase of growth for the drugmaker, particularly if its new therapies receive FDA approval.
