Merck KGaA eyes US$3.5B acquisition of SpringWorks to bolster oncology pipeline

GERMANY—Merck KGaA, the German pharmaceutical and life sciences company, is moving closer to acquiring the U.S.-based biopharma firm SpringWorks Therapeutics in a deal potentially worth around US$3.5 billion.

The two companies confirmed on April 24, 2025, that they are engaged in late-stage negotiations, with discussions centering on a purchase price of approximately US$47 per share.

However, both sides emphasized that no final, legally binding agreement has been reached yet, and talks are ongoing.

The possibility of this acquisition has been the subject of market speculation since February 2025, when reports first emerged that Merck KGaA was exploring a deal with SpringWorks.

At that time, Merck acknowledged the discussions but cautioned that there was no certainty a transaction would occur.

The initial news sent SpringWorks’ share price soaring by 34%, briefly boosting its market capitalisation to over US$4 billion.

Since then, the stock has fluctuated, but the latest news saw shares rise nearly 9% when markets opened on April 25, 2025.

If completed, this acquisition would be one of Merck KGaA’s largest recent deals and would significantly strengthen its oncology portfolio.

SpringWorks brings with it a pipeline of targeted therapies, most notably Ogsiveo (nirogacestat), a drug approved in the U.S. for treating desmoid tumors, and Gomekli (mirdametinib), a MEK inhibitor approved in February 2025 for neurofibromatosis type 1, a rare genetic disorder.

According to industry forecasts, Gomekli could generate up to US$564 million in global sales by 2030, while Ogsiveo’s sales are projected to reach US$1.2 billion in the same period.

Merck KGaA already has a robust presence in oncology, with its top-selling product in 2024 being Erbitux (cetuximab), which brought in about US$1.25 billion.

However, not all of its recent programs have been successful. In June 2024, the company halted the Phase III TrilynX trial for xevinapant after it failed to improve survival rates in head and neck cancer patients.

Additionally, Merck KGaA discontinued development of the BTK inhibitor evobrutinib in March 2024 after disappointing results in multiple sclerosis trials and regulatory scrutiny over safety concerns.

Despite these setbacks, Merck KGaA remains committed to expanding its cancer treatment portfolio.

Earlier in April 2025, the company entered a US$1.4 billion collaboration with Caris Life Sciences to identify new antibody-drug conjugate (ADC) targets.

Merck KGaA is also advancing its own internal ADC program, with its lead candidate M9140 currently in Phase I trials for colorectal cancer.

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