Global pharmaceutical giants: Merck & Co. and Merck KGaA—can you still not tell them apart?

On August 31, 2017, Merck KGaA sold its biosimilars business to Fresenius SE & Co. KGaA, receiving an upfront payment of €156 million, with the potential to receive milestone payments totaling €497 million. On April 19, 2018, Merck KGaA signed an agreement to sell its consumer health business to The Procter & Gamble Company (P&G) in the United States for USD 3.4 billion. On October 18, 2018, Merck KGaA signed an agreement with Luminex Corporation to sell its Amnis and Guava flow cytometry platforms and related reagents for €66 million. On February 19, 2020, Merck KGaA signed an agreement to sell its Allergopharma allergy business—including Allergopharma’s type I allergy-specific immunotherapy—to Dermapharm Beteiligungs GmbH in Grünwald, Germany, for €56 million. On December 20, 2021, Merck KGaA completed the acquisition of Chord Therapeutics SA, a company focused on therapies for rare neuroinflammatory diseases. On December 30, 2021, Merck KGaA signed a definitive agreement to acquire Exelead Inc., a contract development and manufacturing organization (CDMO) specializing in biopharmaceuticals—particularly complex injectable formulations, including lipid nanoparticles (LNPs), a critical component of mRNA therapeutics for treating COVID-19 and other indications. The acquisition closed on February 22, 2022, for approximately USD 793 million. On March 1, 2021, Merck KGaA entered into a licensing agreement with Debiopharm International SA to obtain exclusive global development and commercialization rights (excluding China) to xevinapant (Debio 1143), a clinical-stage candidate currently undergoing a Phase III trial in treatment-naïve, high-risk locally advanced head and neck squamous cell carcinoma (LA-HNSCC). Merck KGaA paid an upfront fee of €188 million and may pay up to €710 million in milestone payments plus royalties on future sales. On October 30, 2023, Merck KGaA announced a licensing agreement with Jiangsu Hengrui Medicine Co., Ltd., granting Merck KGaA exclusive global rights (excluding China) to develop, manufacture, and commercialize the PARP1 inhibitor HRS-1167, as well as an option to select SHR-A1904. The upfront payment was €160 million, with additional milestone payments to follow. On December 4, Merck KGaA entered into an agreement with Abbisko Therapeutics (Shanghai Akeso Biopharma Co., Ltd.), acquiring exclusive commercialization rights in Greater China (mainland China, Hong Kong, Macau, and Taiwan) for pimicotinib—a small-molecule CSF-1R inhibitor—across all indications. Abbisko will retain exclusive development rights for pimicotinib within the licensed territory.

A rare move by an established pharmaceutical giant

German Merck KGaA has long been known for avoiding market hype—but this time, it has made a rare strategic move: pursuing an acquisition. Recent reports indicate that Merck KGaA is in negotiations to acquire SpringWorks Therapeutics, a U.S.-based oncology biotech company. Merck KGaA confirmed this in an official statement, noting that discussions are ongoing but no final agreement has yet been reached. Whether this acquisition ultimately materializes remains highly uncertain. Nonetheless, the market reaction has been immediate and pronounced: SpringWorks Therapeutics (SWTX) surged 34.06% in yesterday’s closing share price. At this moment, industry insiders and investors have turned their attention to SpringWorks: What is the quality and composition of its pipeline—and why has Merck KGaA taken such interest? Conversely, what unmet needs does Merck KGaA seek to address through this potential acquisition? 01 SWTX—What’s the substance? The intrinsic value of SWTX is currently the primary focus for industry observers and investors. Its origins are intriguing: originally part of Pfizer, SpringWorks was spun off from the pharmaceutical giant in 2017, along with several differentiated assets—including PF-03084014. First entering clinical trials in 2006, this compound was initially developed for Alzheimer’s disease; only in 2008 did its development pivot toward oncology. This drug is none other than Nirogacestat—the centerpiece of SWTX’s pipeline. Nirogacestat is SWTX’s flagship asset—and its sole approved product to date. Its target is relatively niche: gamma-secretase. Gamma-secretase inhibitors (GSIs) suppress the Notch signaling pathway, which is implicated in multiple cancers. Specifically, GSIs block the proteolytic cleavage of Notch proteins by gamma-secretase, thereby inhibiting downstream Notch signal transduction. According to Professor Lanjuan Li’s paper “Notch signaling pathway in cancer: from mechanistic insights to targeted therapies,” dysregulation of the Notch pathway correlates with cancer in the following ways: (1) It promotes epithelial–mesenchymal transition (EMT) and angiogenesis in malignant tumors—processes closely linked to tumor proliferation, invasion, and metastasis; (2) It helps maintain cancer stem cell–like properties, thereby enhancing tumor aggressiveness; (3) Its roles in cancer metabolic reprogramming and modulation of the tumor microenvironment suggest it plays a pivotal balancing role between pro- and anti-tumorigenic effects; (4) It also contributes to chemotherapy resistance in tumor cells. (Figure source: Notch signaling pathway in cancer: from mechanistic insights to targeted therapies)

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German drugmaker Merck KGaA agreed to acquire Silence Therapeutics for $1.3 billion to enhance its gene silencing capabilities. The all-cash deal values shares at $20 each and is scheduled to close in Q1 2027.

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