Merck Acquires SpringWorks for $39B to Boost Oncology Portfolio

Merck, a prominent German healthcare and materials conglomerate, has announced a significant acquisition deal. The company has agreed to acquire SpringWorks Therapeutics, a U.S.-based biotechnology firm, for a total equity value of $39 billion. This acquisition is aimed at bolstering Merck's oncology drug portfolio. The deal, valued at $47 per share in cash, translates to an enterprise value of approximately $34 billion, after accounting for SpringWorks' existing cash reserves.

Merck had previously indicated that it was in advanced negotiations with SpringWorks regarding the $47 per share offer. The transaction will be funded through available cash and new debt, and is expected to enhance Merck's adjusted earnings per share by 2027. Despite this substantial acquisition, Merck has stated that it retains the capacity to pursue even larger deals in the future.

SpringWorks, which went public in 2019, specializes in developing treatments for cancer and rare tumors. The company has two notable products on the market: Ogsiveo, which generated $1.72 billion in sales in 2024 and is used to treat desmoid tumors, a rare and aggressive condition affecting soft tissue; and Gomez-Kli, approved in the U.S. in February 2025 for treating NF1-PN, a condition characterized by nerve sheath tumors.

This acquisition marks one of Merck's largest pharmaceutical deals in recent years, furthering its efforts to establish a robust cancer treatment business. In 2015, Merck acquired Sigma-Aldrich, a U.S. laboratory equipment supplier, for $17 billion.

The acquisition of SpringWorks is expected to accelerate Merck's growth, particularly as its sales of the cancer drug Bavencio have slowed and its multiple sclerosis treatment Mavenclad faces patent expiration. The deal is seen as a strategic move to enhance Merck's position in the oncology market, leveraging SpringWorks' innovative pipeline and established products to drive future growth.