Genmab CEO on the $8B Acquisition of Merus: Strategy Behind the ‘Very Fair’ Deal and Plans to Polish a Rough Diamond

Genmab has agreed to acquire Dutch biotech company Merus in an $8 billion all-cash deal, paying $97 per share—a 41% premium over Merus's closing share price124.

The core asset in the deal is petosemtamab, a bispecific antibody in Phase 3 trials for head and neck cancer, which has received two FDA Breakthrough Therapy Designations4.

Phase 2 data indicated petosemtamab extended survival when combined with Merck’s Keytruda, potentially changing care for head and neck tumors1.

Genmab will fund the acquisition using cash plus $5.5 billion in non-convertible debt, with Morgan Stanley Senior Funding Inc. committed, so the deal is not contingent on financing24.

Both companies’ boards have unanimously approved the transaction; completion is expected in early 202624.

Genmab’s CEO and leadership view Merus as a 'rough diamond'—indicating that with Genmab's resources, Merus’s promising therapies can be further developed and commercialized4.

After closing, Genmab expects to have four proprietary programs driving multiple new drug launches by 2027, significantly accelerating its growth in oncology and moving toward a wholly owned asset model24.

Sources:

1. https://www.biopharmadive.com/news/genmab-merus-deal-acquire-petosemtamab-head-neck-cancer/761340/

2. https://cryptorank.io/news/feed/01437-genmab-to-acquire-dutch-biotech-merus-in-8b-deal-to-expand-cancer-pipeline

4. https://ground.news/article/genmab-reportedly-nearing-deal-to-acquire-cancer-drug-developer-merus_187b16