Merck (MRK) To Buy Private Biotech Tilos For Up To $773M
Zacks Investment Research | Jun 11, 2019 08:53AM ET
Merck & Co., Inc. (NYSE:MRK) announced a definitive deal to buy private biotech Tilos Therapeutics for a total potential purchase price of up to $773 million. The deal includes an undisclosed upfront payment and contingent milestone payments.
The acquisition will add Tilos’ portfolio of investigational antibodies targeting a protein called TGFβ, which is believed to play an important role in the development of cancer and fibrotic diseases. Tilos is developing TGFβ inhibiting antibodies in preclinical studies for various forms of cancer, fibrosis and autoimmune disease
Merck has been aggressively buying private and relatively early-stage biotech firms this year.
Last month, Merck announced a definitive agreement to buy small private cancer biotech, Peloton Therapeutics for an upfront payment of $1.05 billion in cash. The acquisition will add Peloton’s novel late-stage renal cell carcinoma (RCC) candidate, PT2977 to Merck’s oncology pipeline. In addition to the upfront payment, Merck will also be entitled to pay a further $1.15 billion of potential milestones payments. The transaction is expected to close in the third quarter of 2019.
In April, Merck closed its previously announced acquisition of small cancer focused biotech, Immune Design for an approximate value of $300 million.
Merck’s shares have performed well this year so far. Merck’s shares have risen 7.9% this year so far compared with the Zacks Investment Research
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