Merck Ends Multi Billion Dollar Acquisition Talks With Revolution Medicines Over Pricing Dispute
Merck has terminated its multi-billion dollar acquisition talks with Revolution Medicines after failing to agree on a price for the experimental drug developer.
Insights:
Merck & Co., Inc. has terminated its pursuit of an acquisition of Revolution Medicines, Inc. following a failure to reach a consensus on the transaction price. The decision to end discussions marks the conclusion of a potential multi-billion dollar deal that would have consolidated the developer of experimental oncology treatments under the larger pharmaceutical firm. According to reports from the Wall Street Journal, negotiations cooled after the two companies were unable to bridge the gap regarding the final valuation.
The existence of the negotiations was first disclosed earlier this month by the Financial Times, which reported that Merck & Co., Inc.was considering a buyout of Revolution Medicines, Inc.valued between $28 billion and $32 billion. This proposed range represented a significant premium over the current market value of Revolution Medicines, Inc., which currently maintains a market capitalization of roughly $22.7 billion based on LSEG data.
