World News | Merck Buying Acceleron Pharma in USD 11.5B Deal

Kenilworth (US), Sep 30 (AP) Merck will spend about USD 11.5 billion to buy Acceleron Pharma and its potential treatment for high blood pressure in vessels that connect the lungs heart.

Merck will pay USD 180 per share in cash for Acceleron, the Kenilworth, New Jersey, company said Thursday.

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Acceleron is running late-stage studies of a potential treatment for patients with pulmonary arterial hypertension, a potentially life-threatening blood vessel disorder.

The drug represents a “potential blockbuster” and a way for for Merck to add a new source of revenue, Mizuho Securities USA analyst Mara Goldstein wrote.

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Merck has long faced investor criticism that it's far too dependent for revenue from its drug Keytruda, which is now approved for treating a dozen types of cancer.

Keytruda brought in USD 4.2 billion for Merck in the second quarter, more than one-third of the company's total revenue.

Merck also is developing a potential COVID-19 treatment, and the company expects to have results from late-stage research into that drug by later this year.

Acceleron also makes Reblozyl, a treatment for anemia in some rare blood disorders. The company developed and sells that drug through a collaboration with another drugmaker, Bristol Myers Squibb Co., which also is the largest institutional shareholder in the Cambridge, Massachusetts, company, with more than an 11 per cent stake.

Reblozyl has received approval from regulators in the United States, Europe, Canada and Australia.

The acquisition is expected to close in the fourth quarter.

Shares of Merck & Co. Inc. climbed 71 cents to USD 75.80 before markets opened Thursday, while Acceleron Pharma Inc. climbed about USD 1 to USD 176.35. (AP)

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)