On Monday, 9 January, Merck & Co., Inc. (NYSE: MRK) announced it entered into a definitive agreement to acquire Harpoon Therapeutics, Inc. (Nasdaq: HARP) for an estimated total equity value of $680m or $23 per share. Merck aims to strengthen its position in the oncology sector with this move.
Merck moving forward with $680m Harpoon acquisition
Harpoon has a portfolio of innovative T-cell engagers using the company’s proprietary TriTAC and ProTriRAC platforms to harness and activate a patient’s immune system to eliminate malign cells. During 2023, Harpoon shares climbed by 41% and surged by almost 112% on Monday. Analysts believe Merck is exploring new avenues of growth as its current top-selling therapeutic, Keytruda, will likely face pricing strain in future. This drug generated $20.9bn in 2022.
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The company released its long-term sales prospects for cancer treatments at the start of the week. On the back of recent transactions, its collection of experimental cancer medicines will likely bring in more than $20bn annually. The president of Merck Research Laboratories, Dr Dean Y. Li, said:
At Merck, we continue to enhance our oncology pipeline through strategic acquisitions that complement our current portfolio and advance breakthrough science to help address the needs of people with cancer worldwide.
Julie Eastland, the president and CEO of Harpoon, supported this statement and added:
At Harpoon, we have always been committed to advancing our cancer immunotherapy candidates to improve the lives of patients. With Merck’s recognized leadership in oncology clinical development and global commercial footprint, our lead candidate, HPN328, is well positioned moving forward.
Bloomberg cited Merck’s CEO, Rob Davis, who stated pharmaceutics prices are on the rise in the wake of the ever-increasing competition in the industry. Hence, the company is always on the lookout for feasible opportunities.
