In a strategic move to strengthen its position in the rare diseases and cancer treatment sectors, Germany's Merck KGaA is on the verge of acquiring SpringWorks Therapeutics (SWTX, Financial). The deal, valued at approximately $3.5 billion, has reached an advanced stage, insiders reveal.
Merck KGaA had initially disclosed its interest in February, and recent discussions have now led to a tentative agreement of nearly $47 per share for the U.S.-based biopharmaceutical company. Sources suggest that the transaction could be finalized as early as Monday, highlighting the swift progress in negotiations.
This acquisition aligns with Merck KGaA's strategy to bolster its portfolio in niche medical fields, leveraging SpringWorks' expertise in developing innovative therapies for rare diseases and oncology. The successful completion of this deal would mark a significant step in Merck's expansion plans and its commitment to addressing unmet medical needs.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for SpringWorks Therapeutics Inc (SWTX, Financial) is $72.50 with a high estimate of $84.00 and a low estimate of $63.00. The average target implies an upside of 63.14% from the current price of $44.44. More detailed estimate data can be found on the SpringWorks Therapeutics Inc (SWTX) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, SpringWorks Therapeutics Inc's (SWTX, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
