Genmab offers $8 billion to acquire cancer therapy specialist Merus, paying a 41% premium. The deal gives Genmab access to the promising petosemtamab cancer drug and is expected to close by Q1 2026. Find out what this means for investors and the biotech sector.
Danish biotech giant Genmab is making big news in the cancer therapy sector with its proposed acquisition of Merus, a Dutch company specializing in innovative cancer treatments. Genmab announced a hefty $8 billion offer, willing to pay Merus shareholders $97 per share. That’s approximately a 41% premium over Merus’s closing price of $68.89 on Nasdaq last Friday and significantly above its current market cap of about $5.2 billion.
Why Does Genmab Want Merus?
The main attraction seems to be Merus’s promising cancer drug, petosemtamab. Currently in a phase 3 clinical trial, petosemtamab has shown highly encouraging results for head and neck cancer when combined with Keytruda, one of the world’s most prescribed immunotherapy medicines. Since Merus revealed these results in May—demonstrating the drug’s combination is more effective than the standard of care—investor interest has soared.
According to projections from Bloomberg, petosemtamab could generate annual sales of over $1 billion by 2030 if approved, making it a potential blockbuster in Genmab’s pipeline.
What’s Next for the Buyout?
The buyout offer is subject to typical regulatory conditions and requires at least 80% of Merus common shares to be tendered, though Genmab reserves the right to lower the threshold to 75%. If all goes to plan, the deal should officially close in the first quarter of 2026.
Investor and Market Reaction
This deal marks a strategic move for Genmab, expanding beyond its existing cancer portfolio and reinforcing its position in the global oncology market. The generous premium offered to Merus shareholders underscores Genmab’s confidence in Merus’s innovative pipeline, especially as biotech M&A activity heats up worldwide.
For Merus, the acquisition is a testament to the financial and therapeutic promise of their research efforts, particularly in the development of next-generation antibody therapies for cancer.
The Bigger Picture
In a competitive and rapidly evolving oncology landscape, major players like Genmab are racing to acquire novel drugs and technologies. This acquisition could provide Genmab with a highly valuable late-stage therapy that may become a major part of future cancer treatment combinations.
Key Takeaways:
- Genmab proposes to acquire Merus for $8 billion ($97 per share).
- This is a 41% premium over Merus’s last closing price.
- Genmab would gain access to petosemtamab, a promising cancer drug projected to earn $1B+ annually by 2030.
- The deal requires at least 80% of Merus’s shares to be tendered and aims for completion by Q1 2026.
Stay tuned as this high-stakes acquisition develops and the potential for new cancer therapies moves a step closer to reality.
