Key Takeaways
- Merck & Co. said Monday that it would purchase Harpoon Therapeutics Inc. for about $680 million to expand its reach in cancer-fighting drugs.
- The $23-per-share offer represented a 118% premium to Harpoon’s closing price on Friday.
- Harpoon shares more than doubled on the news intraday trading Monday.
Shares of Harpoon Therapeutics Inc. (HARP) more than doubled Monday after Merck & Co. (MRK) agreed to buy the cancer drug researcher for about $680 million.
Merck said it would pay $23 per share for Harpoon, a 118% premium to the stock’s closing price on Friday.
The move is aimed at expanding Merck’s reach into the profitable oncology treatment sector. Its biggest-selling drug, the cancer-fighting medication Keytruda, brought in $6.3 billion in the third quarter.
Harpoon’s lead experimental treatment, HPN328, uses T-cell engagers to trigger an immune system response to attack cancer cells in patients suffering from small cell lung cancer and neuroendocrine tumors. HPN328 is currently being studied in a Phase 1/2 trial.
Merck noted that Harpoon is also undertaking a Phase 1 study of a medicine for multiple myeloma, and has several other preclinical candidates.
Dean Li, president of Merck Research Laboratories, said in a press release that the deal continues “to enhance our oncology pipeline through strategic acquisitions that complement our current portfolio.”
The transaction is expected to close in the first half of this year.
Harpoon Therapeutics shares at midday Monday had jumped 112% to $22.42, their highest level since the summer of 2022. Shares of Merck were down about 0.5%.
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