Merck KGaA to buy cancer biotech SpringWorks for $3.9 billion

Seeking to enhance its presence in cancer drugs and the US, the German drug company Merck KGaA is buying the oncology biotech SpringWorks Therapeutics for $3.9 billion. The deal is expected to close in the second half of the year.

SpringWorks brings a pipeline of possible cancer treatments as well as two drugs that have been approved by the US Food and Drug Administration and are still being assessed by European regulators: Ogsiveo (nirogacestat) is a small-molecule γ-secretase inhibitor for treating desmoid tumors, and Gomekli (mirdametinib) is an oral kinase inhibitor that the FDA approved in February for treating adults and pediatric patients with neurofibromatosis type 1.

SpringWorks launched as an independent company in 2017 with $103 million in funding from venture capital firms and Pfizer. It was conceived by Pfizer as a home for drug candidates orphaned by other companies but ready for clinical studies. Nirogacestat and mirdametinib were previously in Pfizer’s drug pipeline.

“The agreed acquisition of SpringWorks is a major step in our active portfolio strategy to position Merck as a globally diversified, innovation and technology powerhouse. For our Healthcare sector, it sharpens the focus on rare tumors, accelerates growth, and strengthens our presence in the U.S.,” Merck CEO Belén Garijo says in a news release. “Beyond this planned transaction, we will continue to explore M&A opportunities across our three complementary business sectors, always with a firm focus on strategic fit, financial robustness, and long-term value creation.”

In October 2024, Merck outlined plans to grow its health-care division with a combination of molecule in-licensing and acquisitions. The firm recently announced that it returned to profitable growth in 2024 after a poor 2023.