Merck KGaA Eyes Major Acquisition in U.S. Biotech Sector

Merck KGaA is in advanced talks to acquire U.S. drugmaker Springworks Therapeutics, potentially impacting the healthcare sector with a sizable move in its cancer treatment pipeline. Springworks' stock surged on the news. No binding agreement exists yet, but a deal could be finalized soon.

Merck KGaA, a leading German healthcare and technology group, is reportedly in the final stages of negotiations to acquire Springworks Therapeutics, a U.S.-based biotech company. This development was disclosed by individuals familiar with the discussions, though no concrete agreement has yet been established.

Springworks' shares saw a notable rise of 34% in the aftermath of Merck's announcement, valuing the company at approximately $4 billion. The potential acquisition is significant for Merck as it seeks to expand its cancer treatment offerings, marking one of its biggest pharmaceutical deals in recent years.

This acquisition comes as activity in the U.S. healthcare sector shows signs of resurgence following last year's slowdown. For Merck, overcoming recent setbacks in drug trials is crucial as it plans to strategically enhance its growth and innovation trajectory.

(With inputs from agencies.)