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On Monday, Germany-based Mercck kga (OTC:MKGAF) (OTC:MKKGY) reacted to press reports and confirmed advanced discussions with SpringWorks Therapeutics Inc (NASDAQ:SWTX), which has a market capitalization of $4.02 billion, according to data from Benzinga Pro.
Merck Germany also confirmed that no legally binding agreement has been entered into. There is no certainty that any transaction will materialize. Furthermore, critical conditions have yet to be met.
Reuters was the first to report the potential deal.
SpringWorks Therapeutics’ first commercial product, Ogsiveo (nirogacestat), is a twice-daily oral medication that is the first and only FDA-approved treatment for desmoid tumors.
In January, rare diseases and cancer-focused SpringWorks Therapeutics reported preliminary fourth quarter and full-year 2024 U.S. net product revenue for Ogsiveo of $61.5 million and $172.0 million, respectively.
The company is scheduled to report Q4 earnings on 20 February.
The company’s second potential commercial product, mirdametinib (NF1-PN), for adults and children with NF1-associated plexiform neurofibromas or NF1-PN, is under FDA review with PDUFA of 28 February.
As of 31 December 2024, total preliminary cash, cash equivalents, and marketable securities were $461.9 million. SpringWorks expects its cash position to fund operations through profitability, which the company anticipates achieving in the first half of 2026.
Citing JPMorgan analysts Reuters report added that Merck KGaA’s oncology business, making up about 25% of its healthcare sales in 2024, could benefit from acquiring SpringWorks.
The report mentions the deal would complement Merck’s existing portfolio and create growth opportunities. Additionally, SpringWorks’ products have the potential to help counter revenue losses from expiring drug patents and increased competition.
Price Action: SWTX stock is down 3.91% at $51.89 at the last check on Tuesday.
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This article Germany’s Merck In Talks To Buy Cancer Drug Maker SpringWorks Therapeutics originally appeared on Benzinga.com
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