Merck KGaA, the German pharmaceutical and life sciences company, announced on April 28, 2025, its agreement to acquire U.S.-based biotech firm SpringWorks Therapeutics for $3.9 billion in cash. The deal, priced at $47 per share, aims to enhance Merck's oncology portfolio, particularly in the treatment of rare tumors.

The acquisition represents a 26% premium over SpringWorks' share price in February 2025. Merck plans to finance the transaction through a combination of available cash and new debt. The deal is expected to close in the second half of 2025, pending shareholder and regulatory approvals.

SpringWorks Therapeutics, headquartered in Stamford, Connecticut, specializes in therapies for rare cancers. The company has two FDA-approved drugs: Ogsiveo, approved in November 2023 for desmoid tumors, and Gomekli, approved in February 2025 for neurofibromatosis type 1-associated plexiform neurofibromas.

Peter Guenter, head of healthcare at Merck, stated, "We have the unique opportunity with SpringWorks to establish a leadership position in rare tumours and build a strong foundation for further investments in this area."

This acquisition is one of Merck's largest since its $17 billion purchase of Sigma-Aldrich in 2015 and its $6.5 billion acquisition of Versum in 2019. It comes as Merck seeks to rejuvenate its drug pipeline following several late-stage development failures, including the halting of head and neck cancer drug xevinapant and the failure of multiple sclerosis drug evobrutinib in late-stage trials.

As of April 28, 2025, Merck's stock price is $82.81, with a slight increase of 0.07% from the previous close. SpringWorks' stock price is $46.09, reflecting a 3.06% increase from the previous close.

The acquisition is expected to be accretive to Merck's adjusted earnings per share by 2027. The transaction is subject to approval by SpringWorks' shareholders and regulatory authorities.

Merck KGaA's acquisition of SpringWorks Therapeutics represents a significant step in strengthening its oncology portfolio, particularly in the realm of rare tumor treatments. By integrating SpringWorks' innovative therapies, Merck aims to enhance its position in the oncology market and address unmet needs in rare cancer treatments.