RXDX - Is Merck Stock a Screaming Buy After This $11 Billion Acquisition?
2023-04-19 10:45:00 ET
Earlier this week, Merck (NYSE: MRK) went shopping and purchased the precision-medicine company Prometheus Biosciences (NASDAQ: RXDX) for $200 a share, for a total value of $10.8 billion. The transaction is expected to close in the third quarter of 2023.
The deal centers around PRA023, the late-stage autoimmune disorder therapy poised to enter phase 3 testing for ulcerative colitis and Crohn's disease later this year.
Prior to this deal, Merck was widely expected to add another late-stage asset to its pipeline. The core reason is that the pharma company is barreling toward the patent expiration of its most important commercial asset, Keytruda, in 2028.
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Is Merck Stock a Screaming Buy After This $11 Billion Acquisition?