Merck & Co., Inc. (NYSE:MRK) has explored a potential acquisition of Swiss biotech firm MoonLake Immunotherapeutics in a deal valued at over $3 billion, aiming to strengthen its drug pipeline.
A close-up of a person’s hand holding a bottle of pharmaceuticals.
The American pharmaceutical giant made a nonbinding offer earlier this year, offering a premium above MoonLake’s $2.6 billion market value, according to sources familiar with the matter.
Although the initial proposal was turned down, talks may resume. Merck & Co., Inc. interest comes ahead of key phase-three trial results for MoonLake’s lead drug, sonelokimab, which targets hidradenitis suppurativa — a severe chronic skin condition— and psoriatic arthritis.
MoonLake, founded in 2021 by former McKinsey partner Jorge Santos da Silva, is being advised by Morgan Stanley and Goldman Sachs on the sale process. While a deal is not guaranteed, other potential buyers may also step in.
Merck & Co., Inc. is under pressure from shareholders to pursue acquisitions amid declining investor confidence. Concerns include an expected revenue drop from its $30 billion cancer drug Keytruda losing patent protection by 2028, falling Gardasil vaccine sales in China, and slower-than-expected growth of its new hypertension drug, Winrevair.
While Merck has made smaller biotech deals in China recently, CEO Rob Davis said in April that market uncertainty wouldn’t stop the company from actively pursuing new deals.
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Disclosure. None.
