Merck to Acquire Caraway Therapeutics for $610 Million to Expand Neurodegenerative Disease Pipeline

MSD(MRK.US) announced on Tuesday that it would acquire biotechnology company Caraway Therapeutics for $610 million. The potential consideration includes an undisclosed upfront payment and contingent milestone payments. Merck & Co., Inc. will make the upfront payment in the fourth quarter of 2023, which will be included in its non-GAAP financial results.

It is reported that Merck & Co., Inc. will acquire all issued shares of Caraway Therapeutics through a subsidiary and obtain milestone revenues related to the development of certain pipeline drug candidates.

Caraway Therapeutics is dedicated to seeking new therapies for genetic neurodegenerative diseases and rare disorders. Through its MRL Ventures Fund, Merck & Co., Inc. has been a shareholder of Caraway Therapeutics since 2018.

George Addona, Senior Vice President of Discovery, Preclinical Development and Translational Medicine at Merck Sharp & Dohme AG, said: "Caraway Therapeutics' multidisciplinary approach has made significant progress in evaluating new mechanisms for modulating lysosomal function, with the potential to treat progressive neurodegenerative diseases. We look forward to applying our expertise to build on this work and develop much-needed disease-modifying therapies for these conditions."

Editor: Guo Mingyu