Prometheus Biosciences To Be Acquired By Merck

(RTTNews) - In a bid to strengthen its immunology pipeline, Merck (MRK) has agreed to acquire Prometheus Biosciences Inc. (RXDX) for $200.00 per share in cash for a total equity value of roughly $10.8 billion.

Prometheus is a biotechnology company pioneering a precision medicine approach in developing novel therapeutic and companion diagnostic products for the treatment of inflammatory bowel disease. The company's lead drug candidate is PRA023, a monoclonal antibody that works by blocking TL1A, a target associated with both intestinal inflammation and fibrosis.

As per the acquisition agreement terms, Merck, through a subsidiary, will acquire all of the outstanding shares of Prometheus. The acquisition is dependent on the approval of Prometheus Biosciences shareholders.

The deal, which is subject to certain conditions, including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary conditions, is expected to close in the third quarter of 2023.

RXDX has traded in a range of $21.50 to $129.60 in the last 1 year. The stock closed Friday's trading at $114.01, up 1.02%.