Merus Stock Soars 41% on $8 Billion Genmab Buyout
The all-cash deal gives Danish biotech Genmab control of a promising late-stage cancer drug, accelerating its strategic shift to a wholly-owned model.
Shares of Merus N.V. (NASDAQ: MRUS) skyrocketed over 41% after Danish biotechnology firm Genmab A/S (NASDAQ: GMAB) announced its intention to acquire the company in an all-cash deal valued at approximately $8.0 billion. The acquisition, priced at $97.00 per share, represents a significant premium over Merus's recent closing price and has been unanimously approved by both companies' boards.
The deal marks a pivotal moment for Genmab, significantly accelerating its transition from a royalty-based revenue model to a fully integrated, commercial-stage company. Central to the acquisition is Merus's lead asset, petosemtamab, a late-stage bispecific antibody in development for treating head and neck cancer. The drug, which has received two Breakthrough Therapy Designations, is viewed by analysts as a potential blockbuster therapy. that petosemtamab could generate more than $1 billion in annual sales by 2030.
"This acquisition aligns with Genmab's long-term strategy and has the potential to provide durable growth," said Jan van de Winkel, President and CEO of Genmab. The move is expected to expand and diversify Genmab's revenue streams while bolstering its late-stage oncology pipeline. , the addition of petosemtamab is a compelling strategic fit that aligns with Genmab's expertise in antibody therapy development.
Prior to the announcement, Merus stock had already seen a surge in overnight trading as rumors of advanced talks circulated. The company has high institutional ownership, signaling strong investor confidence in its pipeline. For Genmab, this marks its largest acquisition to date, a move it plans to finance through a combination of cash and debt. the transaction is anticipated to be accretive to its EBITDA by the end of 2029, with Genmab's full-year 2025 financial guidance remaining unchanged.