Merck to Acquire Prometheus Biosciences for Roughly $11 Billion

Merck said on Sunday it will buy Prometheus Biosciences for about $10.8 billion, picking up a promising experimental treatment for ulcerative colitis and Crohn’s disease and building up its presence in immunology.

Merck will pay $200 per share for the California-based biotechnology company that specializes in treatments for autoimmune diseases, representing a 75.4% premium to Prometheus’ last closing price.

Shares of Prometheus were trading at $194.49 before the bell on Monday.

“This is allowing us to move into immunology in a strong way and will allow us sustainable growth, we think, well into the 2030s given the long patent life,” Merck Chief Executive Robert Davis said in an interview.

Read the source article at cnbc.com