Merck & Co., Inc. (NYSE: MRK) revealed that it has signed an agreement with Pandion Therapeutics, Inc. (NASDAQ: PAND) to acquire the clinical-stage biotechnology firm. Merck will buy Pandion through its subsidiary for $60 per share in cash. The total enterprise value of the firm is $1.85 billion. As per the deal, Merck will commence the tender offer to purchase all the shares of Pandion.
The tender offer will be executed after the fulfillment of certain necessary conditions. After the finalization of the deal, Merck’s acquisition division will be combined into Pandion, and any leftover shares of common stock of Pandion will be terminated and transformed into the right to obtain the same $60 per share price outstanding in the tender offer. The deal is anticipated to execute in the first half of 2021.
Previously, Pandion has disclosed that its top candidate PT101 had executed a Phase 1a clinical trial, which accomplished its main goal of safety and acceptability. The firm’s pipeline also includes PD-1 agonists in growth for various autoimmune disorders. The financial advisor to Merck for this offering will be Credit Suisse Securities (USA) LLC and the legal advisor to the firm is Covington & Burling LLP.
Merck & Co., Inc. (NYSE: MRK) shares are soaring 0.44% at $74.90 during the pre-market trading session of Thursday. Merck & Co., Inc.'s share price went from a low point around $65.25 to briefly over $87.80 in past 52 weeks. Merck & Co., Inc.'s market cap has remained high, reaching $191.66 billion at the time of writing.