Merck to buy Imago for US$1.35b to gain bone marrow drugs

MERCK & Co agreed to purchase Imago BioSciences to gain therapies for bone marrow conditions that lead to overproduction of blood cells, including one drug in mid-stage trials.

Merck will pay US$36 a share in cash for South San Francisco-based Imago, more than double its last closing price, for a total value of about US$1.35 billion. The transaction is expected to close in the first quarter of next year, the companies said on Monday (Nov 21) in a statement.

Imago is developing therapies for myeloproliferative neoplasms, with one drug called bomedemstat in mid-stage trials for conditions that affect the bone marrow’s production of platelets and red blood cells. The purchase is part of Merck’s search for more treatments for cancer and rare diseases after its deal discussions with Seagen stalled earlier this year. 

“This acquisition of Imago augments our pipeline and strengthens our presence in the growing field of hematology,” Merck Chief Executive Officer Robert Davis said in the statement. BLOOMBERG