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.