Denmark’s Genmab has agreed to acquire Merus NV, a Nasdaq-listed Dutch biotechnology company, in an all-cash transaction valued at $8 billion, the companies announced on Monday.
The deal marks a significant expansion of Genmab’s oncology portfolio, adding a promising late-stage cancer therapy candidate to its pipeline.
Under the terms of the agreement, Genmab will pay $97.00 per share, representing a 41% premium over Merus’ closing price of $68.89 on September 26 and a 44% premium over the company’s 30-day volume weighted average price of $67.42.
Both companies’ boards of directors have unanimously approved the transaction.
The acquisition will be funded through a mix of cash on hand and $5.5 billion in non-convertible debt financing.
Genmab has secured a funding commitment from Morgan Stanley Senior Funding Inc., ensuring the deal is not subject to financing conditions.
With this acquisition, Genmab expects to strengthen its position in the competitive biotechnology sector.
“Following the closing of the transaction, Genmab will have four proprietary programs expected to drive multiple new drug launches by 2027,” the companies said in the statement.
Petosemtamab joins Genmab’s late-stage pipeline
At the core of the deal is Merus’ experimental drug petosemtamab, a bispecific antibody targeting EGFRxLGR5, which is currently being tested in two Phase 3 trials for head-and-neck cancer.
Interim results are expected in 2026.
The US Food and Drug Administration has granted petosemtamab two Breakthrough Therapy Designations, covering both first-line and second-line indications.
Data presented earlier this year at the American Society for Clinical Oncology meeting showed encouraging response rates and progression-free survival outcomes compared with the current standard of care.
Genmab said it anticipates the drug’s potential launch in 2027, subject to positive trial outcomes and regulatory approvals.
The company believes the therapy could generate at least $1 billion in annual sales by 2029, with scope for multi-billion-dollar revenues thereafter.
Strategic importance of the deal
Jan van de Winkel, Genmab’s president and chief executive officer, said the deal was consistent with the group’s long-term strategy.
“Petosemtamab has the potential to be a transformational therapy for patients living with head and neck cancer. With our proven track record in development and commercialization, we are confident we can unlock its promise,” he said.
Merus chief executive Bill Lundberg welcomed the deal, citing the companies’ shared focus on innovation in antibody therapeutics.
“We believe Genmab has the right vision and experience to advance petosemtamab in recurrent and metastatic head and neck cancer and beyond,” he said.
Genmab aims to broaden the development of petosemtamab into earlier lines of therapy while leveraging its late-stage expertise and global commercial infrastructure.
Analysts expect the deal to accelerate the company’s transformation into a leading global biotechnology player, providing durable growth into the next decade.
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