Merck Finalizes $3.4 Billion Acquisition, Enhancing Rare Tumor Portfolio
Integration of SpringWorks Therapeutics Brings Approved Therapies for Rare Cancers and Immediate Revenue Uplift
Merck has successfully completed its previously announced $3.4 billion acquisition of SpringWorks Therapeutics, a biopharmaceutical company based in Stamford, Connecticut. The deal, which was first made public in April 2025, closed after receiving necessary regulatory approvals.
The integration is projected to immediately boost Merck’s revenue and positively impact its earnings per share (EPS pre) starting in 2027. This move aligns with Merck’s strategic goal of strengthening its healthcare division in the US and globally through targeted acquisitions of innovative compounds. The acquisition will allow SpringWorks to utilize Merck’s vast global resources to access markets outside the US.
SpringWorks brings a valuable pipeline focused on rare tumors with limited treatment options. Key therapies include:
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OGSIVEO (nirogacestat): Approved by the US Food and Drug Administration (FDA) for adult patients with progressing desmoid tumors. The European Medicines Agency’s human medicines committee (CHMP) also recently issued a favorable opinion recommending its approval.
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GOMEKLI (mirdametinib): The only FDA-approved therapy for both adult and pediatric patients (aged two and over) with neurofibromatosis type 1-associated plexiform neurofibromas. The CHMP also endorsed its approval in May 2025.
The acquisition of SpringWorks represents the largest M&A transaction for Merck’s Healthcare business sector in nearly 20 years. Merck’s CEO affirmed the company’s commitment to identifying further M&A opportunities across all three business sectors, prioritizing long-term value creation.
The combined portfolios aim to address significant treatment gaps for patients with rare tumors. Merck also holds global rights to pimicotinib, an investigational therapy for tenosynovial giant cell tumor being developed with Abbisko Therapeutics.
Following the closure of the transaction, Merck assumes full ownership, and SpringWorks’ shareholders receive $47 per share in cash, with the company’s shares ceasing trade on Nasdaq.
