Germany's Merck KGaA to Acquire US Biotech Firm SpringWorks for $3.9 Billion

By Madelaine Panganiban

Updated: Apr 29 2025, 04:40 AM EDT

Germany’s Merck KGaA to Acquire US Biotech Firm SpringWorks for — FILES - Picture taken on February 17, 2012 shows a man walking past the logo of German chemicals and pharmaceutical group Merck KGaA at the company's plant in Darmstadt, western Germany. ARNE DEDERT/DPA/AFP via Getty Images/Getty Images

German company Merck KGaA has agreed to buy US biotech firm SpringWorks Therapeutics for $3.9 billion.

The deal, announced Monday, is aimed at growing Merck's business in cancer treatment and rare disease drugs.

Merck, based in Darmstadt, Germany, will pay $47 per share in cash. This is a 26% increase from SpringWorks' recent stock price. The deal's total enterprise value is around $3.4 billion, once SpringWorks' cash is factored in.

SpringWorks, located in Stamford, Connecticut, develops medicines for cancer and uncommon tumors.

According to Reuters, its two approved drugs are Ogsiveo, used to treat desmoid tumors, and Gomekli, approved earlier this year to help patients with a condition called NF1-PN. Both are diseases that can seriously affect soft tissue and nerves.

"This acquisition supports our ambition to become a leading global oncology player," said Merck CEO Belen Garijo in a statement. She added that the company would keep looking at other buying opportunities in the future.

$SWTX ... Germany's Merck KGaA agreed to acquire U.S. biopharmaceutical company SpringWorks Therapeutics for around $3.9 billion, in a bid to expand its oncology and rare disease business.

The German life-sciences and chemicals company said Monday that the deal seeks to… pic.twitter.com/KvcJd6XINd
— Marty Chargin (@MartyChargin) April 28, 2025

Merck to Acquire SpringWorks Amid Pharma Division Pressures

Merck plans to pay for the purchase using its available cash and by taking on new debt. It expects the deal to start helping its earnings by 2027.

Analysts say that SpringWorks could bring in up to $1.6 billion in sales each year by 2030, Bloomberg said.

This is Merck's biggest deal since 2019, when it bought Versum Materials to expand its electronics business. The company has built up cash over the past few years, especially during the pandemic, when it produced key parts for COVID-19 vaccines and tests.

The buyout comes at a time when Merck's pharmaceutical division is under pressure. The company is facing challenges after some of its drug trials failed and with a key patent for its multiple sclerosis drug Mavenclad set to expire soon.

By adding SpringWorks' cancer-focused treatments, Merck hopes to strengthen its future product lineup and maintain its place in the competitive healthcare market.

SpringWorks has been a public company since 2019. Its work on rare diseases and strong US presence made it an appealing target for Merck as it looks to grow beyond Europe.