This biopharma stock more than doubled on Monday: find out more
- Merck & Co Inc to buy Imago Biosciences in a $1.35 billion deal.
- The transaction is expected to close in the first quarter of 2023.
- Imago Biosciences stock opened more than 100% up on Monday.
Imago Biosciences shareholders to get a 105% premium
The all-cash agreement translates to $36 a share – just over double the price at which the stock closed on Friday.
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Merck expects the transaction to help boost its haematology portfolio. In the press release, Robert M. Davis – the President and Chief Executive of Merck & Co said:
We continue to invest in our pipeline with a focus on applying our unique capabilities to unlock the value of breakthrough science. This acquisition of Imago augments our pipeline and strengthen our presence in the growing field of Haematology.
The pharmaceutical behemoth expects the deal to close in the first quarter of 2023. Merck shares are also in the green on Monday.
Imago Biosciences also reported Q3 results this month
Imago Biosciences is a California-based company that’s committed to developing treatments for bone marrow diseases, including Myeloproliferative Neoplasms (MPNs). According to Dr Hugh Y. Reinhoff – its Founder and Chief Executive:
This agreement leverages Merck’s industry-leading clinical development expertise to maximise the therapeutical potential off bomedemstat while providing important value for our shareholders.
Centerview Partners and Latham & Watkins are acting as Imago Biosciences’ financial and legal advisors, respectively, for this deal.