Published by Global Banking & Finance Review®
Posted on April 24, 2025
2 min readLast updated: January 24, 2026
Merck KGaA is in advanced talks to acquire SpringWorks Therapeutics for $3.5 billion, potentially enhancing its cancer treatment offerings.
By Sriparna Roy
(Reuters) - Germany's Merck KGaA said on Thursday it is in late-stage talks to acquire U.S.-based SpringWorks Therapeutics for about $3.5 billion, a deal that could give it access to a recently approved rare disease drug and expand its portfolio of experimental cancer treatments.
Merck said that the companies are in discussions on the basis of a price of around $47 per share, which gives a valuation of roughly $3.5 billion, according to Reuters calculations.
No final decision has been taken and no legally binding agreement has been entered into, Merck said in a statement.
The SpringWorks acquisition would rank as one of the biggest pharma deals for the German healthcare and technology group in recent years, boosting its ongoing efforts to build out its cancer treatment pipeline.
In 2015, Merck agreed to buy U.S. lab equipment supplier Sigma-Aldrich for $17 billion.
Reuters reported in February that the companies were in advanced talks, which Merck subsequently confirmed. SpringWorks' shares have fallen 17% since then.
Shares of SpringWorks settled 9% higher at close, after the Wall Street Journal first reported that Merck is nearing a deal, which could be completed as soon as Monday. The stock was trading closer to $60 in February.
SpringWorks, which has a market value of more than $3 billion, did not respond to a Reuters request for comment.
The deal could accelerate growth in Merck, particularly as sales of its cancer drug Bavencio slow and multiple sclerosis treatment Mavenclad faces loss of exclusivity, said Barclays analyst Emily Field.
The Connecticut-based drugmaker, which went public in 2019, focuses on developing drugs to treat several rare cancers and genetic disorders.
Its monotherapy, Ogsiveo, has been approved in the U.S. to treat desmoid tumours — abnormal growth that occurs in connective tissues.
In February, the U.S. health regulator approved SpringWorks' genetic disorder drug Gomekli.
Merck has recently suffered high-profile setbacks in late-stage drug trials, prompting it to halt development of its head and neck cancer drug xevinapant. A major trial testing multiple sclerosis drug evobrutinib failed in December 2023.
(This story has been corrected to clarify that the deal is for $3.5 billion, not $3.5 million, in the headline)
(Reporting by Sriparna Roy and Christy Santhosh in Bengaluru, and Sabrina Valle in New York; Editing by Alan Barona)
The article discusses Merck's potential acquisition of SpringWorks Therapeutics for $3.5 billion.
Merck aims to expand its portfolio of cancer treatments and access SpringWorks' rare disease drug.
This acquisition would be one of Merck's largest pharma deals in recent years, enhancing its treatment pipeline.
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