Merck Strengthens Immunology Pipeline with Acquisition of Prometheus Biosciences, Inc.
PRA023 is a novel, late-stage candidate for ulcerative colitis and Crohn’s disease and other autoimmune conditions
Prometheus Biosciences’ comprehensive data set enables target discovery and precision medicine approach in inflammation and immunology
Merck has agreed to buy Prometheus Biosciences for $10.8bn as the US drugmaker bolsters it pipeline ahead of the possible loss of exclusivity over its best-selling cancer drug later this decade.
The all-cash transaction for Prometheus — a San Diego-based biotech focusing on diseases caused by abnormal activity of the body’s immune system — is the latest sign of a rebound in mergers and acquisitions in the sector following a dip in activity last year.
Prometheus is developing a monoclonal antibody treatment for ulcerative colitis, a type of inflammatory bowel disease. It announced positive trial results for its lead drug candidate targeting the disease from a mid-stage trial in December and is developing several other therapies using machine learning to identify drug targets.
Merck said the deal would strengthen the company’s position in the fast-growing field of immunology, where there is significant unmet patient need.
Merck has been on the hunt for acquisitions over the past year as it seeks to diversify its pipeline ahead of the potential loss of exclusivity on its blockbuster cancer drug Keytruda. Key patents related to that drug, which generated almost $21bn in revenues in 2022, are due to expire towards the end of the decade enabling rivals to launch similar products.
The US drugmaker was reportedly in talks with oncology-focused Seagen about a potential deal last year but did not move forward with a transaction. In March Pfizer swooped on Seagen, announcing a deal for a total enterprise value of $43bn, which was the largest pharmaceutical transaction announced since AbbVie agreed to buy Allergan in 2019.
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