Merck Enters Definitive Agreement to Acquire SpringWorks Therapeutics
Through this sizable acquisition, Merck will accelerate its growth in the rare tumor segment and boost its U.S. oncology presence.
German science and technology company Merck has announced an agreement to acquire U.S.-based biotech firm SpringWorks Therapeutics. The all-cash transaction is valued at approximately USD 3.9 billion, representing a 26% premium on SpringWorks’ 20-day average stock price ahead of a rumoured deal. Pending shareholder and regulatory approval, the deal is expected to be finalized in H2 2025 with contributions to adjusted earnings per share by 2027 (1).
SpringWorks, headquartered in Stamford, Connecticut, specializes in developing treatments for rare cancers and tumors. It currently has FDA-approved therapies; Ogsiveo (nirogacestat) for desmoid tumors — which generated USD 172 million in revenue in 2024 — and Gomekli (mirdametinib) for neurofibromatosis type 1 (NF1) with plexiform neurofibromas, which gained approval early this year as the first treatment for both adults and children with NF1-PN.
“The agreed acquisition of SpringWorks is a major step in our active portfolio strategy to position Merck as a globally diversified, innovation and technology powerhouse. For our Healthcare sector, it sharpens the focus on rare tumors, accelerates growth, and strengthens our presence in the U.S.,” said Belén Garijo, Chair of the Executive Board and CEO of Merck, in a company press release about the acquisition (1).
Recent advancements in immunotherapy and precision medicine positions both companies to play a significant role in the future of cancer treatment and follow in the path of other established immunotherapy drugs, including Bristol Myers Squibb (BMS) (Opvido and Yervoy), Roche/Genentech (Tecentriq), and AstraZeneca (Imfinzi).
Immunotherapy drugs in the form of monoclonal antibodies and immune checkpoint inhibitors are widely accepted in clinical practice as effective treatment options and are expected to lead the way for future therapies (2). A recent clinical trial demonstrated the significant potential of immunotherapy drugs. Patients with rectal cancer were reported to be in complete remission through immunotherapy alone — eliminating the need for surgery, radiation, or chemotherapy (3).
Recent advances in immunotherapy, however, are not limited to monoclonal antibodies and immune checkpoint inhibitors. Clinical trials of combination therapies have demonstrated that pairing immune checkpoint inhibitors with other agents-such as JAK inhibitors-can significantly enhance treatment efficacy. In one example, combining a JAK inhibitor with an immune checkpoint inhibitor resulted in higher tumor response rates and longer-lasting remissions in patients with lung cancer and lymphoma compared to monotherapy (4). The emergence of new modalities such as antibody-drug conjugates (ADCs), therapeutic cancer vaccines, and engineered cell therapies like chimeric antigen receptor T-cells. ADCs, which link antibodies to cytotoxic agents, are expanding the range of treatable cancers by targeting tumor-specific proteins (5).
The potential for immunotherapy drugs is huge. Valued at USD 226.38 in 2024, the market is projected to grow at a compound annual rate of 11.9% from 2025 to 2030 (6), fueled by substantial investments in research and development, strategic collaborations, and supportive healthcare policies that enhance patient access to advanced therapies.
References
Merck. Merck to Acquire US Biopharma Company SpringWorks Therapeutics to Accelerate Sustainable Growth of Healthcare Business. Press Release, April 28, 2025.
Grand View Research. Immunotherapy Drugs Market Size, Share & Trends Analysis Report by Drug Type (Monoclonal Antibodies, Immunomodulators, Vaccine), by Indication (Autoimmune Diseases, Infectious Diseases, Cancer), by Region, and Segment Forecasts, 2025–2030. Report, April 2025.
Memorial Sloan Kettering Cancer Center. Rectal Cancer Disappears After Experimental Use of Immunotherapy, Now an FDA Designated Breakthrough Therapy. News, December 16, 2024.
National Cancer Institute. Drug Combo JAKs Up Immunotherapy in Two Clinical Trials. Blog, August 8, 2024.
AACR. Experts Forecast Cancer Research and Treatment Advances in 2025. Blog, January 10, 2025.
Grand View Research. Cancer Immunotherapy Market Size, Share & Trends Analysis Report by Product, by Application, by Distribution (Hospital Pharmacy, Retail Pharmacy, Online Pharmacy), by End-use, and Segment Forecasts, 2025–2030. Report, April 2025.