German Merck makes SpringWorks holders squirm

SpringWorks holders haven't had it easy since their company was confirmed to be in "advanced discussions" over a takeover bid from Merck KGaA last month. Weeks of silence have followed, suggesting that the companies can't agree on a price, and now investors have another worry: Merck has instead done a deal with Abbisko on the latter's CSF-1R inhibitor pimicotinib. Still, a more positive read is that Merck has been preoccupied with pimicotinib, and it's now free to turn to the bigger matter of a $4bn SpringWorks acquisition. The Abbisko deal follows a December 2023 tie-up under which Merck paid $70m for Asia rights to pimicotinib in the niche condition tenosynovial giant cell tumour. Pimicotinib could have an edge over Ono's Deciphera-originated and now US-approved Romvimza, judging by data from the phase 3 Manuever study, a win that on Friday persuaded Merck to take up an option over global pimicotinib rights for $85m. On 6 March Evercore ISI's Cory Kasimov wrote that a SpringWorks takeover was still on, citing the lack of a statement from Merck saying it wasn't, and SpringWorks' cancellation of an investor meeting; perhaps new bidders have entered, but there's been no update since.

Will they, won’t they? Merck KGaA’s SpringWorks timeline

Source: company statements.