Biopharmaceutical company Merck (MRK), known as MSD outside the U.S. and Canada, agreed Monday to acquire, through a subsidiary, its peer ArQule, Inc. (ARQL) for $20 per share in cash for an approximate total equity value of $2.7 billion. The transaction is expected to close early in the first quarter of 2020.
ArQule is a publicly traded biopharmaceutical company focused on kinase inhibitor discovery and development for the treatment of patients with cancer and other diseases.
The acquisition of ArQule further diversifies Merck's oncology pipeline with expansion into targeted therapies that treat hematological malignancies.
ArQule's lead investigational candidate, ARQ 531, is a novel, oral Bruton's tyrosine kinase (BTK) inhibitor currently in a Phase 2 dose expansion study for the treatment of B-cell malignancies.
Under the terms of the agreement, Merck, through a subsidiary, will initiate a tender offer to acquire all outstanding shares of ArQule at $20 per share.
The closing of the tender offer is primarily subject to the tender of shares representing at least a majority of the total number of ArQule's outstanding shares and other customary conditions. Upon the successful completion of the tender offer, Merck's acquisition subsidiary will be merged into ArQule.
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