Genmab A/S announced its intention to acquire Merus N.V., a clinical-stage biotechnology company, for approximately USD 8.0 billion in an all-cash transaction. The acquisition, unanimously approved by both companies' Boards of Directors, is expected to significantly accelerate Genmab’s shift to a wholly-owned model and diversify its revenue streams.
The centerpiece of the acquisition is petosemtamab, Merus’ lead asset, an EGFRxLGR5 bispecific antibody in Phase 3 development for head and neck cancer. Petosemtamab has received two Breakthrough Therapy Designations from the U.S. FDA for first- and second-line plus head and neck cancer indications, with compelling Phase 2 data showing substantially higher overall response rates and median progression-free survival compared to standard of care.
Genmab anticipates the initial launch of petosemtamab in 2027, subject to clinical results and regulatory approvals, with potential for over one-billion-dollar annual sales by 2029 and multi-billion-dollar annual revenue thereafter. The transaction is expected to be funded through a combination of cash on hand and approximately $5.5 billion of non-convertible debt financing, with the tender offer anticipated to close by early in the first quarter of 2026.
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