Merck (NYSE: MRK), also known as MSD outside of the United States and Canada, and Caraway Therapeutics, Inc. have entered into a definitive agreement for Merck to acquire Caraway Therapeutics in a deal valued at up to $610 million.
Strategic Acquisition and Potential Consideration
Merck, through a subsidiary, is poised to acquire Caraway Therapeutics, a preclinical biopharmaceutical company devoted to pioneering treatments for genetically defined neurodegenerative and rare diseases. Inclusive of an undisclosed upfront payment and contingent milestone payments, the total potential consideration underscores the strategic nature of this transaction.
George Addona, Senior Vice President at Merck Research Laboratories, underscored Caraway’s multidisciplinary approach in evaluating novel mechanisms for treating progressive neurodegenerative diseases. Consequently, the acquisition is strategically positioned to harness Merck’s expertise in developing disease-modifying therapies.
Martin D. Williams, CEO of Caraway Therapeutics, expressed gratitude for the milestone achieved, emphasizing the company’s steadfast dedication to developing therapeutics capable of altering the progression of neurodegenerative diseases. This acquisition is perceived as a noteworthy opportunity to advance discovery and preclinical programs with invaluable support from Merck.
Terms of the Agreement and Board Approval
Under the agreement, Merck will acquire all outstanding shares of Caraway. Additionally, earn out milestones will be linked to the development of certain pipeline candidates. Caraway Therapeutics’ Board of Directors has approved the transaction, marking a significant step in the acquisition process.
About Caraway Therapeutics
Caraway Therapeutics is a leading biopharmaceutical company specializing in novel approaches for treating genetically defined neurodegenerative and rare diseases. The company focuses on activating cellular recycling processes and modulating lysosomal function. Currently, top-tier investors back Caraway, which is headquartered in Cambridge, MA.
About Merck
Merck, or MSD outside the United States and Canada, is a research-intensive biopharmaceutical company using leading-edge science to save and improve lives globally. With a history spanning over 130 years, Merck continues to develop innovative health solutions for the prevention and treatment of diseases.
Forward-Looking Statements and Risk Factors
The news release includes forward-looking statements, subject to significant risks and uncertainties. Additionally, Merck emphasizes the potential uncertainties related to regulatory approvals, commercial success, and various factors outlined in the statement. Moreover, several of these factors include industry conditions, economic factors, and the impact of global events like the COVID-19 pandemic.
References:
1 – https://www.merck.com/news/merck-to-acquire-caraway-therapeutics-inc/
