Genmab reportedly nearing deal to acquire cancer drugmaker Merus

Genmab is in advanced negotiations to acquire Merus, a Dutch biotech company known for its therapies targeting head and neck cancer, particularly its bispecific antibody petosemtamab.

Merus has seen significant interest from various major biopharmaceutical companies and a notable surge in its market value, increasing over 60% this year, mainly due to positive clinical trial results involving petosemtamab.

The outcome of the negotiations with Genmab remains uncertain, with potential for other interested parties to emerge in the bidding for Merus, which currently has a market capitalization of approximately $5.2 billion.

Recommendation Rating: Strong Buy

Danish biotechnology firm Genmab (GMAB) is reportedly in advanced negotiations to acquire Merus (NASDAQ:MRUS), a Dutch company focused on developing therapies for head and neck cancer, according to a recent Bloomberg News report citing sources familiar with the discussions.

In recent weeks, Merus has attracted interest from multiple major biopharmaceutical companies, leading to expectations of an imminent announcement regarding a merger or acquisition. The company’s key asset is a bispecific antibody named petosemtamab.

While discussions with Genmab are progressing, the outcome remains uncertain, and there is a possibility that other interested parties may emerge, sources indicated. Both Merus and Genmab did not provide immediate comments when approached for a statement.

Headquartered in Utrecht, Netherlands, Merus has experienced a remarkable surge, achieving over 60% growth in value this year. Its market capitalization currently stands at approximately $5.2 billion, primarily driven by positive results shared in May from a mid-stage clinical trial involving petosemtamab.

This surge followed the announcement that when petosemtamab was combined with Merck’s (MRK) PD-1 inhibitor Keytruda, the treatment yielded an overall response rate of 63% in patients with head and neck cancer, a notoriously challenging tumor type that has attracted the attention of companies including smaller competitor Bicara Therapeutics (BCAX).