Merck KGaA acquires SpringWorks for $3.9bn to expand rare tumor portfolio

Merck KGaA, a renowned German pharmaceutical company, has announced its decision to acquire SpringWorks Therapeutics for approximately $3.9 billion. This strategic acquisition provides Merck access to SpringWorks’ portfolio of treatments for rare tumors, including a recently approved drug in the United States for neurofibromatosis type 1 (NF1).

Earlier this year, the U.S. Food and Drug Administration (FDA) approved Gomekli (mirdametinib) for the treatment of symptomatic plexiform neurofibromas in both adult and pediatric patients aged two years and older. These tumors, associated with NF1, cannot be removed surgically, making the approval of Gomekli a significant milestone in addressing this unmet medical need. Additionally, SpringWorks has already received FDA approval for Ogsiveo (nirogacestat), a treatment option for adults with progressing desmoid tumors who require systemic therapy.

Belén Garijo, the Chief Executive Officer and Executive Board Chair of Merck, emphasized that the acquisition marks a pivotal development in the company’s strategic focus on enhancing its presence in the rare tumor sector. Garijo stated, “For our healthcare sector, it sharpens the focus on rare tumors, accelerates growth and strengthens our presence in the US.” This move aligns with Merck’s broader strategy of expanding its footprint in the United States by focusing on specialized medical treatments for rare conditions.

Saqib Islam, Chief Executive Officer of SpringWorks, expressed optimism regarding the merger, highlighting the potential for creating immediate value for stakeholders. Islam mentioned, “We believe that by joining forces with Merck, we are not only creating significant, immediate value for our stakeholders, but we will also be able to leverage their resources and expertise to build a brighter future for the patient communities we seek to serve while also creating new opportunities for SpringWorks employees as part of a global organization.”

This acquisition announcement closely follows Merck’s recent agreement with Abbisko Therapeutics, where it invested $85 million to secure global commercialization rights for pimicotinib. This investigational therapy targets tenosynovial giant cell tumors (TGCT), a condition characterized by non-malignant but frequently recurring tumors in the joints. Merck and Abbisko reported encouraging outcomes from a late-stage clinical trial of pimicotinib in November, which demonstrated a significant improvement in the primary endpoint of objective response rate compared to a placebo in patients with TGCT.

Andrew Paterson, Chief Marketing Officer for Merck’s Healthcare sector, commented on the importance of the Abbisko deal. He stated, “The Abbisko deal underscores our commitment to advancing new treatment options in rare oncology for patients who need them.” Paterson emphasized Merck’s aim to transform the treatment landscape and offer hope to patients living with TGCT, who currently face limited treatment options.

In summary, Merck KGaA’s acquisition of SpringWorks Therapeutics represents a strategic expansion into the rare tumor market, bolstering its portfolio with FDA-approved therapies for conditions with significant unmet needs. By integrating SpringWorks’ innovations and capitalizing on its own resources, Merck aims to enhance treatment options and improve outcomes for patients affected by these rare conditions worldwide.