MRK - Merck Makes a Bold Move That Could Transform Its Business
2023-04-27 09:15:00 ET
There's nothing quite like a big acquisition to turn a business around. Consider how CVS Health acquired health insurer Aetna to broaden its operations; AbbVie acquired Botox-maker Allergan, which also helped diversify its business; and most recently, Pfizer announced plans to buy cancer company Seagen .
Now, Merck (NYSE: MRK) is making a similar move, recently announcing plans to acquire Prometheus Biosciences (NASDAQ: RXDX) . While it's not nearly the same scale of the aforementioned acquisitions, it may still be a game changer for the business. Let's see what it could also mean for investors.
Prometheus Biosciences is an unprofitable business that incurred losses totaling $141.8 million last year on revenue of only $6.8 million. But this is a company with some exciting prospects, which is why Merck has made an aggressive bid to buy the company for $10.8 billion . It all centers around one prized asset: PRA023.
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Merck Makes a Bold Move That Could Transform Its Business