Merck Acquires Prometheus Biosciences for $11 Billion, Expanding Immunology Pipeline

Merck has announced its acquisition of Prometheus Biosciences for approximately $11 billion. The deal is expected to close in the first half of 2022, pending regulatory approval.

Prometheus Biosciences is a clinical-stage biotechnology company that focuses on developing novel therapies for inflammatory bowel disease and other autoimmune disorders. The acquisition will expand Merck’s immunology pipeline, which includes treatments for diseases such as rheumatoid arthritis and lupus.

“We are excited to add Prometheus Biosciences’ world-class capabilities in immunology to Merck’s existing portfolio,” said Kenneth C. Frazier, Merck’s chairman and CEO. “This acquisition underscores our commitment to pursue innovative therapies that address unmet medical needs.”

The acquisition comes after Merck announced its plans to spin off its women’s health, biosimilars, and legacy brands businesses into a new company, Organon. Merck said the acquisition of Prometheus Biosciences is not expected to impact the planned spinoff.

Prometheus Biosciences’ lead drug candidate, PRA023, is currently in Phase 2 clinical trials for ulcerative colitis and other inflammatory bowel diseases. The company has also developed a platform technology that uses biomarkers to identify patients who are most likely to respond to specific therapies.

“We are pleased to join Merck and leverage the resources of a leading biopharmaceutical company to accelerate the development of our pipeline and bring new treatments to patients with autoimmune disorders,” said Mark McKenna, CEO of Prometheus Biosciences.

The acquisition is part of a growing trend in the pharmaceutical industry, as companies look to expand their portfolios and pipelines through mergers and acquisitions.