Merck buys rare disease firm Acceleron for $ 11.5 billion



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(Bloomberg) – Merck & Co. has agreed to buy Acceleron Pharma Inc. for approximately $ 11.5 billion, further strengthening its portfolio of therapies to treat rare diseases.

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Acceleron shareholders will get $ 180 per share in cash, a 34% premium over the price at the end of last month, but below the share’s intraday highs this week. Shares started to soar in mid-September, and Bloomberg reported on September 24 that the company was in advanced sell-off talks.

The deal is expected to be finalized in the fourth quarter. Merck plans to hold an investor call this morning, the companies said in a statement.

Acceleron stock slipped 0.2% to $ 175 at 9:38 a.m. Thursday in New York. Merck shares gained 1.2%.

Merck is one of several companies seeking future successful drugs through acquisitions, including Sanofi, Pfizer Inc., Amgen Inc., Gilead Sciences Inc. and Roche Holding AG.

Earlier this year, AstraZeneca Plc bought rare disease specialist Alexion Pharmaceuticals Inc. in a $ 39 billion mega-deal as the UK drugmaker moves into a lucrative new area of ​​medicine.

“Strategic business development is a top priority for Merck as we seek to drive sustainable growth and further strengthen and balance our pipeline with cutting-edge science,” said Rob Davis, CEO and President of Merck, in the release. He said Acceleron’s research will strengthen Merck’s growing cardiovascular portfolio and pipeline.

Acceleron’s pipeline focuses on a particular type of protein that plays a central role in the regulation of cell growth, differentiation and repair. The company’s lead candidate is an advanced pulmonary arterial hypertension drug called Sotatercept.

Acceleron’s portfolio also includes Reblozyl, a treatment for anemia in certain rare blood diseases approved in the United States, Europe, Canada and Australia. Public since 2013, the company’s shares had climbed about 56% in the past 12 months.

Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. LLC acted as financial advisers to Merck, and Covington & Burling LLP and Gibson, Dunn & Crutcher LLP were its legal advisers. Centerview Partners LLC and JP Morgan Securities LLC were financial advisers to Acceleron and Ropes & Gray LLP its legal counsel.

(Updates the stock price information in the fourth paragraph and adds information about trading advisers.)

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