Merck said to be close to acquiring Prometheus Biosciences - WSJ
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- Merck (NYSE:MRK) is in late-stage discussions to acquire Prometheus Biosciences (NASDAQ:RXDX), which is focused on treatments for immune-mediated diseases, The Wall Street Journal reported early Sunday morning.
- No potential price tag for a deal has been disclosed. Prometheus (RXDX) has a market cap of ~$5.42B.
- While Prometheus (RXDX) doesn't have any marketed therapies, its lead candidate, PRA023, a monoclonal antibody targeting cytokine TL1A, is in late phase 2 development for ulcerative colitis and Crohn's disease. It is under investigation earlier in phase 2 for systemic sclerosis-associated interstitial lung disease.
- Prometheus (RXDX) surged 190% in December 2022 on strong phase 2 results for PRA023 in separate trials for ulcerative colitis and Crohn's.
- The company's only other candidate in the clinic is PRA052, a antibody targeting the CD30 ligand, in phase 1. The first planned indication is for ulcerative colitis.
- The newspaper said that a deal could be announced as soon as later on Sunday.
- Seeking Alpha's Quant Rating upgraded Prometheus (RXDX) to strong buy from hold on April 3.