MSD makes $1.4bn bid on biopharma company
Move could garner ‘milestone’ treatment for one of MSD’s portfolios | Activity comes after a Spanish watchdog fined the pharma firm $39 million.
Merck Sharp and Dohme (known as MSD outside of the US) has strengthened its haematology portfolio with the addition of clinical stage biopharmaceutical company Imago BioSciences.
In an announcement shared yesterday, November 21, MSD—which is known as Merck & Co in the US—said that it would acquire Imago for $1.35 billion.
California-based Imago is focused on developing new medicines for the treatment of myeloproliferative neoplasms (MPNs) and other bone marrow diseases.
Robert Davis, president and chief executive officer of MSD, said: “We continue to invest in our pipeline with a focus on applying our unique capabilities to unlock the value of breakthrough science for the patients we serve. This acquisition of Imago augments our pipeline and strengthens our presence in the growing field of haematology.”
Imago’s lead candidate bomedemstat (IMG-7289) is currently being evaluated in multiple phase 2 clinical trials for the treatment of certain bone marrow diseases.
Hugh Rienhoff, founder and CEO of Imago, said: “This milestone is a testament to more than a decade of pioneering research by Imago scientists and the entire Imago team’s unwavering dedication to improving the lives of patients.
“This agreement leverages Merck’s industry-leading clinical development expertise to maximise the therapeutic potential of bomedemstat while providing important value for shareholders.”
This is MSD’s second large acquisition in a year and half—in September last year, the company announced plans to acquire Acceleron Pharma for $11.5 billion, in a bid to strengthen its cardiovascular pipeline.
Outside of its mergers and acquisitions activity, in recent months, MSD has faced some trials and tribulations.
In October, Spain’s competition authority fined the company €39 million ($39 million) for alleged anti-competitive practices, after finding that MSD had sought to delay the entry of a generic version of its NuvaRing contraceptive device.
Earlier in the year, MSD had also been accused of dodging billions of dollars in taxes on cancer treatment Keytruda in the US by “holding patents in the Netherlands and manufacturing the drug in Ireland”. The claims were contained in a letter from the chairman of the US Senate Committee on Finance, Senator Ron Wyden, addressed to MSD.
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