New Jersey’s Merck & Co to purchase Acceleron for $11.5bn in rare-disease-drug push

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New Jersey’s Merck & Co to purchase Acceleron for $11.5bn in rare-disease-drug push

Merck & Co Inc., the Kenilworth, New Jersey-headquartered American multinational pharmaceutical company initially established in Germany by a Merck family back in the 1668s, had been brewing off an option to an $11.5 billion purchase of Acceleron Pharma Inc largely in a bid to branch out its portfolio to rare cardiovascular diseases, widening collections beyond its best-selling aging cancer drug Keytruda.

If truth is to be spoken, the deal would provide Merck & Co with an access to Acceleron’s rare disease drug, sotatercept, a treatment for a rare cardiovascular disease PAH or Pulmonary Arterial Hypertension which Merck believes could open up an opportunistic window to achieve billion of dollar in sales.

Aside from that, latest move from Merck & Co came forth as its blockbuster lung cancer treatment, Keytruda that accounted for roughly a 36.7 per cent or a $4.18 billion of entire sales of the New Jersey-based pharmaceutical, has been heading towards a loss of market exclusivity by 2028.

Nonetheless, Sotatercept had still been in a late-stage clinical trial, though Merck claimed that the drug could potentially become a jackpot to a $7.5 billion PAH market by 2026.

Merck to purchase rare disease drug maker Acceleron

According to the financial terms of the buyout deal disclosed on Thursday, Merck would pay off Acceleron shareholders $180 per share, remarking a premium of 2.6 per cent of Acceleron’s Wednesday’s closing price, IBES data from Refinitiv had unveiled.

Followed by the announcement, a Cantor Fitzgerald analyst, Louise Chen, wrote in a client note that an Acceleron deal would not entirely cover up a decline in sales of Merck’s Keytruda amid an upscaled competition, but the move would help Merck to diversify its portfolio.

Merck, in tandem, is expected to launch Sotatercept in the United States by 2024-2025 and would seek for an exclusivity for pulmonary arterial hypertension at least until 2036-37.