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Acceleron Will Be Acquired By Merck For $11.5 Bln With Focus On Rare Disease Drugs


09/30/2021


Acceleron Will Be Acquired By Merck For $11.5 Bln With Focus On Rare Disease Drugs
Merck & Co is currently focused on augmenting its portfolio with medicines for rare diseases. As a part of this strategy, the United States based pharmaceutical giant is slated to acquire the drug maker Acceleron Pharma Inc in a deal worth about $11.5 billion, the companies said on Thursday.
 
According to the deal, a payment of $180 per Acceleron share in cash will be made by Merck will which, according to Refinitiv data, is equivalent to a premium of about 2.6 per cent of the closing price of the company’s shares on Wednesday.
 
Access to rare disease drug candidate, sotatercept – a drug that is viewed to be potentially lucrative, will be available to Merck following the completion of the deal. Merck manufactures the hugely successful cancer drug Keytruda.
 
The business focus of Acceleron, which is based on Cambridge, in Massachusetts, is on the development of therapeutics that treat cardiovascular and other blood-related disorders. The company is currently conducting a late stage study of its sotatercept drug – a drug that has been developed for the treatment of a rare cardiovascular disease called pulmonary arterial hypertension (PAH), which is a form of high blood pressure that impacts the lungs.
 
For pharma companies, the global market for medications and treatment of treatments targeting rare diseases has is currently a very lucrative one financially, as higher prices are charged by drug makers for this genre of medicines that cater to a small patient population globally as such rare diseases do not affect large groups of people.
 
According to the U.S. National Institute Of Health, a rare disease situation affects an estimated 25 to 30 million Americans who have to live whit such diseases. That has encouraged a number of drug makers to try and capture a portion of that market.
 
Following the completion of the acquisition, in addition to the drug sotatercept, access to another drug called Reblozyl will also be available to Merck. This second drug has gained approval for the treatment of two blood related disorders -  including anemia among patients who suffer from beta thalassemia.
 
"Although the acquisition of Acceleron will not fully remove the overhang of generic competition for MRK's single largest drug Keytruda (we estimate 37% of 2021 sales), it does help diversify sales, which addresses a large shareholder concern," Cantor Fitzgerald analyst Louise Chen said in a client note.
 
The acquisition is expected to end by the fourth quarter of the current year
 
(Source:www.cnbc.com)Merck & Co is currently focused on augmenting its portfolio with medicines for rare diseases. As a part of this strategy, the United States based pharmaceutical giant is slated to acquire the drug maker Acceleron Pharma Inc in a deal worth about $11.5 billion, the companies said on Thursday.
 
According to the deal, a payment of $180 per Acceleron share in cash will be made by Merck will which, according to Refinitiv data, is equivalent to a premium of about 2.6 per cent of the closing price of the company’s shares on Wednesday.
 
Access to rare disease drug candidate, sotatercept – a drug that is viewed to be potentially lucrative, will be available to Merck following the completion of the deal. Merck manufactures the hugely successful cancer drug Keytruda.
 
The business focus of Acceleron, which is based in Cambridge, in Massachusetts, is on the development of therapeutics that treat cardiovascular and other blood-related disorders. The company is currently conducting a late-stage study of its sotatercept drug – a drug that has been developed for the treatment of a rare cardiovascular disease called pulmonary arterial hypertension (PAH), which is a form of high blood pressure that impacts the lungs.
 
For pharma companies, the global market for medications and treatment of treatments targeting rare diseases has is currently a very lucrative one financially, as higher prices are charged by drug makers for this genre of medicines that cater to a small patient population globally as such rare diseases do not affect large groups of people.
 
According to the U.S. National Institute Of Health, a rare disease situation affects an estimated 25 to 30 million Americans who have to live whit such diseases. That has encouraged a number of drug makers to try and capture a portion of that market.
 
Following the completion of the acquisition, in addition to the drug sotatercept, access to another drug called Reblozyl will also be available to Merck. This second drug has gained approval for the treatment of two blood-related disorders -  including anemia among patients who suffer from beta thalassemia.
 
"Although the acquisition of Acceleron will not fully remove the overhang of generic competition for MRK's single largest drug Keytruda (we estimate 37% of 2021 sales), it does help diversify sales, which addresses a large shareholder concern," Cantor Fitzgerald analyst Louise Chen said in a client note.
 
The acquisition is expected to end by the fourth quarter of the current year
 
(Source:www.cnbc.com)