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Merck to buy ArQule in $2.7bn cash deal

Mon 09 December 2019 12:39 | A A A

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(Sharecast News) - Merck has agreed to buy biopharmaceutical group ArQule in a $2.7bn cash deal.

Under the terms of the transaction, which is expected to close in the first quarter of next year, Merck will pay $20 per share. The price represents a 100% premium to ArQule's closing share price on Friday.

ArQule is engaged in the research and development of targeted therapeutics to treat cancers and rare diseases. Its clinical-stage pipeline consists of four drug candidates, all of which are in targeted, biomarker-defined patient populations.

Roger M. Perlmutter, president of Merck Research Laboratories, said: "ArQule's focus on precision medicine has yielded multiple clinical-stage oral kinase inhibitors that have novel and important properties.

"This acquisition strengthens Merck's pipeline with the addition of these strategic assets including, most notably, ARQ 531, a compelling candidate for the treatment of B-cell malignancies."

At 1305 GMT, ArQule shares were up 101% in pre-market trade at $19.41.

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