Prometheus Biosciences, which has been on a roll since last fall’s positive results in a Phase 2 trial for treatments for ulcerative colitis and Crohn’s disease, is being gobbled up by Merck for $10.8 billion.
The San Diego biotechnology firm, which employs roughly 100 workers, has agreed to a $200 per share cash offer from Merck. The deal is expected to close in the third quarter of this year, pending approval from Prometheus shareholders.
Prometheus went public in February 2021 at $19 a share. Merck swooped in for the acquisition to bulk up its immunology pipeline where there remains a significant unmet need, said Robert Davis, chairman and chief executive of Merck, in a statement.
“This transaction adds diversity to our overall portfolio and is an important building block as we strengthen the sustainable innovation engine that will drive our growth well into the next decade,” he said.
In October, Prometheus announced that data from a 120-patient ulcerative colitis study showed its monoclonal antibody therapy candidate achieved a 26.5 percent remission rate for patients with moderate-to-severe disease who had failed to benefit from other therapies.
The same monoclonal antibody therapy, called PRA023, was also studied for Crohn’s disease in a separate clinical trial with 55 patients. It showed significant benefits on biomarkers associated with inflammation and fibrosis. The study also achieved a 49 percent remission rate, compared with a pre-determined historical remission rate of 16 percent.
“This agreement with Merck, a leader in biopharmaceutical research and development, allows Prometheus to maximize the potential for PRA023, while continuing to apply our technology and expertise to fuel further discoveries to address the needs of patients with immune disorders,” said Mark McKenna, chief executive of Prometheus, in a statement.
The company has a second therapy targeting Crohn’s disease working through Phase 1 trials, the results of which are expected late this year. And it has one of the world’s largest precision gastrointestinal disease biobanks, which is linked to its investigational new drug engine that aims to put forward a potential candidate every 12 to 18 months.
Prometheus’s shares ended trading Monday up 70 percent at $193.51 on the Nasdaq exchange.
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