Pharmaceutical giant Merck announced on April 16 the purchase of California-based biotech company Prometheus Biosciences for nearly $11 billion, according to a report by news agency AFP.
The two companies “have entered into a definitive agreement under which Merck, through a subsidiary, has agreed to acquire Prometheus for $200.00 per share in cash for a total equity value of approximately $10.8 billion," Merck said in a statement.
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Prometheus’s share price was at $114.01 when the New York Stock Exchange closed on April 14. The company is developing a treatment for autoimmune diseases, including ulcerative colitis and Crohn’s disease, dubbed PRA023.
“The agreement with Prometheus will accelerate our growing presence in immunology where there remains substantial unmet patient need," said Merck chairman and CEO Robert Davis, according to the statement.
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