NEW YORK – Merck on Friday said it has completed its previously announced deal to purchase San Diego-based Prometheus Biosciences.
Prometheus develops precision therapeutics for immune-mediated diseases like ulcerative colitis, Crohn's disease, and other autoimmune conditions, as well as companion diagnostics. The company's Prometheus360 platform identifies novel therapeutic targets by analyzing a gastrointestinal bioinformatics dataset with machine learning.
"The Prometheus acquisition accelerates our growing presence in immunology, augments our diverse pipeline, and increases our ability to deliver patient value," Robert Davis, Merck's chairman and CEO, said in a statement.
Prometheus' lead candidate, PRA-023, will be renamed MK-7240. The drug candidate is a monoclonal antibody that targets tumor necrosis factor-like ligand 1A, which is associated with intestinal inflammation and fibrosis. Last year, Prometheus shared results from two Phase II studies of the drug in ulcerative colitis and Crohn's disease patients.
Rahway, New Jersey-based Merck acquired all outstanding shares of Prometheus for $200 per share in cash, equal to roughly $10.8 billion.
The purchase is being accounted for as an asset acquisition by Merck, and as a result, it will record a charge of approximately $10.3 billion, or approximately $4.00 per share. The charge will result in a reduction in both second-quarter and full-year 2023 GAAP and non-GAAP results, Merck said. It also is expected to negatively impact Merck's earnings per share by approximately $.25 in the first 12 months following the close of the transaction due to investments needed to advance pipeline assets and the cost of financing, approximately half of which will be incurred in the second half of 2023.