Merck to Acquire ArQule for $2.7 Billion to Strengthen Precision Oncology Pipeline

VCBeat (WeChat ID: vcbeat) has learned that on December 9, 2019, Merck (NYSE: MRK) announced it would acquire ArQule (NASDAQ: ARQL) through a subsidiary for $20 per share in cash, representing a total equity value of approximately $2.7 billion.

In addition, BofA Securities will serve as Merck’s financial advisor, Covington & Burling as its legal counsel, and Centerview Partners as ArQule’s exclusive financial advisor.

Pursuant to the terms of the acquisition agreement, Merck will initiate a tender offer through its subsidiary to acquire all outstanding shares of ArQule. The completion of the tender offer is subject to certain conditions, including the acquisition of a majority of ArQule’s total outstanding shares. Upon completion of the tender offer, the Merck subsidiary responsible for the acquisition will merge with ArQule. The transaction is expected to be completed in early 2020 Q1.

Merck, founded in 1981 and headquartered in New Jersey, USA, is a global leading biopharmaceutical company. The company is dedicated to providing medicines and vaccines for many of the world’s most challenging diseases. Through its prescription drugs, vaccines, and biologics, Merck operates in more than 140 countries and regions worldwide, delivering innovative healthcare solutions.

Merck remains committed to advancing the forefront of medical research to drive the development of treatments for diseases that threaten people around the world, such as cancer, cardiovascular disease, emerging zoonotic diseases, Alzheimer’s disease, and infectious diseases (including HIV and Ebola virus).

A key objective for Merck is to translate groundbreaking scientific research into oncology drugs to help cancer patients worldwide. Merck is committed to exploring the potential of immuno-oncology, which represents one of the largest development programs in the industry, covering more than 30 types of tumors. The company will continue to strengthen its portfolio through strategic acquisitions, ensuring the prioritized development of oncology candidates with the potential to improve treatments for advanced-stage cancer.

ArQule, founded in 1993 and headquartered in Massachusetts, USA, is a clinical-stage biopharmaceutical company. The company is dedicated to the discovery and development of kinase inhibitors for the treatment of patients with cancer and other diseases. ArQule’s primary investigational candidate, ARQ 531, is a novel oral Bruton’s tyrosine kinase (BTK) inhibitor currently undergoing Phase 2 dose expansion studies for the treatment of B-cell malignancies.

In early clinical trials, ARQ 531 demonstrated manageable safety and antitumor activity for the treatment of patients with relapsed or refractory chronic lymphocytic leukemia (CLL) and Richter’s transformation. The final data from the Phase 1 study of ARQ 531 will be presented at the 61st American Society of Hematology (ASH) Annual Meeting and Exposition, held in Orlando, Florida, on December 9, 2019.

Dr. Roger M. Perlmutter, President of Merck Research Laboratories, stated: “ArQule focuses on the field of precision medicine and has developed multiple novel and highly valuable clinical-stage oral kinase inhibitors. With this acquisition, Merck will add these strategic assets, including the most prominent ARQ 531 (a candidate drug for treating B-cell malignancies), thereby strengthening our business pipeline.”

Paolo Pucci, CEO of ArQule, stated, “We are proud that Merck has recognized the contributions of ArQule and its scientific partners to the field of precision oncology. With this agreement, Merck’s strong and unwavering support will benefit ArQule’s portfolio, thereby realizing our vision of serving patients.”

(Compiled by Jiang Ying)