Merck Completes Acquisition of Prometheus Biosciences, Inc.

Merck & Co has acquired Prometheus Biosciences, Inc. for $10.8 billion, making it a wholly-owned subsidiary and helping Merck expand its presence in immunology while strengthening its pipeline with a potential best-in-class candidate for immune-mediated diseases such as ulcerative colitis and Crohn’s disease. The leading clinical candidate, PRA-023, is now known as MK-7240 and is a humanized monoclonal antibody directed to tumor necrosis factor-like ligand 1A (TL1A), which is associated with both intestinal inflammation and fibrosis.

Prometheus’ PRA-023 was developed for the treatment of immune-mediated diseases including UC, CD, and other autoimmune conditions. This acquisition will negatively impact EPS by roughly $0.25 over the first 12 months following the close of the deal due to investment into advancing pipeline assets and cost of financing.

Merck's CEO said that the acquisition accelerates their growing presence in immunology, augments their diverse pipeline, increases their ability to deliver patient value and brings them a potential best-in-class candidate that creates an opportunity