Merck KGaA to Acquire SpringWorks Therapeutics for Healthcare Growth

Merck KGaA, Darmstadt, Germany, a major figure in science and technology, has announced its intention to acquire SpringWorks Therapeutics in a significant deal valued at approximately $3.9 billion. The acquisition reflects Merck KGaA's strategic move to bolster its presence in the U.S. healthcare market and enhance its focus on treating rare tumors.

The transaction, expected to close in the latter half of 2025, involves Merck KGaA purchasing SpringWorks for $47 per share in cash. This represents a 26% premium over SpringWorks' average stock price before the deal's speculation surfaced. Merck KGaA, based in Germany, sees this acquisition as a pivotal step in its portfolio strategy, aiming to become a diversified innovation and technology leader globally, particularly in healthcare.

SpringWorks Therapeutics, a U.S.-based biopharmaceutical firm, specializes in addressing severe rare diseases and cancer. It has developed pioneering therapies, including a systemic treatment for adults with desmoid tumors and the first approved therapy for treating neurofibromatosis type 1-associated plexiform neurofibromas in both adults and children. These innovations are considered critical in addressing unmet medical needs.

By acquiring SpringWorks, Merck KGaA aims to immediately boost its revenue stream and accelerate growth in the medium to long term. The acquisition is set to be accretive to Merck KGaA’s earnings per share by 2027. The deal will also expand Merck KGaA's reach in the United States, the largest pharmaceutical market, thereby strengthening its global footprint in healthcare.

SpringWorks' current portfolio, which includes marketed first-in-class therapies, complements Merck KGaA’s recent efforts in developing treatments for rare tumors. This includes a collaboration with Abbisko Therapeutics to commercialize a therapy for tenosynovial giant cell tumor worldwide. The integration of SpringWorks’ innovative products with Merck KGaA’s resources is expected to drive further advancements in this sector.

Peter Guenter, CEO of Healthcare at Merck KGaA, emphasized the acquisition’s potential to solidify Merck KGaA's leadership in the rare tumors domain. It represents an opportunity to make significant contributions to patient care globally while leveraging SpringWorks’ established U.S. market success. The acquisition will also provide SpringWorks the resources to expand its impact beyond the U.S. and facilitate further innovation for treating complex tumors.

Saqib Islam, CEO of SpringWorks Therapeutics, expressed optimism about the merger, highlighting shared values between the companies, such as a commitment to transforming the lives of patients with rare tumors. The merger is seen as a strategic fit that promises to create immediate value for stakeholders and broaden the reach of SpringWorks' therapies.

SpringWorks’ FDA-approved products, OGSIVEO® and GOMEKLI™, are vital components of its portfolio. These treatments have set new standards in managing desmoid tumors and neurofibromatosis type 1-associated plexiform neurofibromas, respectively. Their approval and continued development underscore SpringWorks' commitment to addressing rare diseases, an area with substantial unmet needs.

The boards of both companies have unanimously approved the acquisition, marking a clear path forward subject to customary closing conditions and regulatory approvals. This strategic acquisition by Merck KGaA, which will be financed through available cash and new debt, is aligned with its broader goals of pursuing external innovation and achieving sustainable growth across its healthcare, life science, and electronics sectors.