Merck to buy Imago for $1.35 bln to broaden portfolio of blood disorder drugs
The $36/share cash offer of Imago represents almost a 107% premium to the last close of trading. With Keytruda's key cancer immunotherapy patents expected to be lost in 2028, Merck is trying to expand its drug portfolio. Last year it bought Acceleron Pharma for about $11.5 billion to gain access to an experimental therapy for high blood pressure.
According to BMO Capital Markets analyst Evan Zygerman, the perceived potential revenue from the Imago deal is probably not enough to make up for the loss of exclusivity Keytruda left at the end of this decade.
Zygerman expects the company to close more deals that will help fill the revenue gap due to the loss of the Keytruda patent. Imago, a bone marrow drug company, is currently testing its flagship drug in interim studies to treat some rare blood cancers. Merck did not provide details on the impact of the Imago deal on its financial results in the near term. The companies expect to close the deal in the first quarter of 2023.
Nov. 25, 2022