To expand its oncology portfolio with immunotherapies, Merck & Co. (MRK.N.) said on Monday that it would acquire cancer medication researcher Harpoon Therapeutics (HARP.O.) for around $680 million.
The American pharmaceutical company has been increasing its efforts to create new sources of income as its popular immunotherapy, Keytruda, approaches the point where its essential patents may be lost, allowing biosimilars to enter the market.
For California-based Harpoon, Merck has made a cash offer of $23 per share, 118% more than the stock’s most recent closing price on Friday.
After Bloomberg initially revealed that sale discussions were underway, Harpoon’s stock more than quadrupled in premarket trading on Monday.
Harpoon is developing two immunotherapies for multiple myeloma and a particular kind of lung cancer. Through T cells trained to identify and target cancer, immunotherapies use the body’s immune system to treat cancer patients.
