Merck to acquire Caraway Therapeutics in $610m deal for neurodegenerative disease treatments

TAGS

Merck and Caraway Therapeutics, Inc. have announced a definitive agreement in which Merck, through a subsidiary, will acquire Caraway Therapeutics. The total potential consideration for the acquisition is up to $610 million, including an undisclosed upfront payment and contingent milestone payments.

Expanding Research in Neurodegenerative Diseases

This acquisition aligns with Merck’s commitment to enhancing its research in the treatment of progressive neurodegenerative diseases. George Addona, Senior Vice President at Merck Research Laboratories, highlighted Caraway’s progress in lysosomal function modulation, which holds promise for developing disease-modifying therapies.

See also  Aeglea BioTherapeutics buys Spyre Therapeutics to revolutionize IBD treatment

Caraway Therapeutics’ Innovative Approach

Caraway Therapeutics, a preclinical biopharmaceutical company, focuses on innovative treatments for genetically defined neurodegenerative and rare diseases. Its pipeline includes novel, small-molecule therapeutics aimed at altering the progression of these debilitating conditions.

Merck announces strategic acquisition of Caraway Therapeutics for neurodegenerative disease treatments

Merck announces strategic acquisition of Caraway Therapeutics for neurodegenerative disease treatments. Photo courtesy of Merck & Co., Inc.

CEO’s Perspective on the Milestone

Martin D. Williams, CEO of Caraway Therapeutics, expressed the acquisition as a significant milestone, reflecting the company’s dedication to developing impactful therapeutics. He acknowledged the support from investors, including SV Health Investors, AbbVie Ventures, Amgen Ventures, Eisai Innovation, and MRL Ventures Fund.

See also  PDS Biotechnology gets FDA fast track status for PDS0101

Terms of the Agreement

Under the agreement’s terms, Merck will acquire all outstanding shares of Caraway, with earnout milestones related to the development of specific pipeline candidates. The Board of Directors of Caraway Therapeutics has approved the transaction, and Merck has been a shareholder of Caraway Therapeutics since 2018 through its MRL Ventures Fund.

See also  Ipsen to acquire American biopharma company Epizyme for $247m
CATEGORIES
TAGS
Share This