Genmab acquires Merus in $8B deal, betting on late-stage cancer therapy

Denmark-based Genmab is acquiring Dutch biotech Merus for $8 billion to gain full rights to petosemtamab, a promising late-stage bispecific antibody targeting head and neck cancer.

Why it matters: The move accelerates Genmab's shift to owning and commercializing its cancer therapies, positioning petosemtamab as a potential blockbuster with up to $4 billion in annual sales.

Backstory: Merus impressed analysts in May with a 79% 12-month survival rate in a phase 2 trial of petosemtamab. The therapy targets EGFR and LGR5, two key cancer receptors, and is currently in two phase 3 trials. Genmab expects market entry by 2027 if approvals follow.

Ka-ching: CEO Jan van de Winkel says the deal could “significantly accelerate” Genmab’s evolution into a global biotech leader. One would certainly hope so, given that Genmab paid $97 per share, a 41% premium, to acquire Merus.

Zoom in: Genmab's pipeline also includes assets from its $1.8B ProfoundBio buy and prior partnerships with BioNTech and J&J.

Big picture: This acquisition aligns with Genmab’s long-term strategy to move away from co-developments and royalties toward full ownership of oncology assets. Petosemtamab becomes one of four late-stage drugs Genmab hopes to launch by 2027.