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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Merck and Co Inc | NYSE:MRK | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.79 | -0.62% | 127.47 | 128.48 | 127.18 | 128.11 | 6,221,929 | 01:00:00 |
By Kimberly Chin
Merck & Co. agreed to acquire cancer drug developer Peloton Therapeutics Inc. for $1.05 billion in cash, adding to a list of deals in 2019 by pharmaceutical companies looking to bolster their cancer treatment portfolios.
Merck would acquire all shares outstanding of Peloton through a subsidiary, the company said Tuesday.
The takeover deal comes as Peloton was preparing to go public. Last week, the Dallas-based company said it would offer 9.4 million shares in an initial public offering, with an expected price range of $15 to $17 a piece. This would give the company net proceeds of roughly $137 million at the midpoint range.
In addition to the initial $1.05 billion consideration from Merck, Peloton shareholders are also eligible to receive an additional $1.15 billion if the company achieves certain regulatory and sales milestones.
"This acquisition exemplifies Merck's strategy to pursue novel therapeutic candidates based on exceptionally promising and innovative research," said Roger Perlmutter, president of Merck Research Laboratories, in prepared remarks.
The companies expect the transaction to close in the third quarter.
Peloton, which is based in Dallas, is a closely held drug discovery and development company focused on oral medicines for cancer and other non-oncology diseases. Peloton's leading drug candidate PT2977 is a novel oral inhibitor for late-stage renal cell carcinoma.
The market for cancer drugs is $123 billion world-wide. Earlier this year, Eli Lilly & Co. acquired Loxo Oncology Inc. for roughly $8 billion in cash and Bristol-Myers Squibb Co. said it was buying Celgene Corp. in a deal valued at about $74 billion. The transaction is expected to close in the third quarter.
Write to Kimberly Chin at kimberly.chin@wsj.com
(END) Dow Jones Newswires
May 21, 2019 09:31 ET (13:31 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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