Merck has agreed to accumulate Prometheus Biosciences for about $10.8 billion to bolster the corporate’s presence in immunology, the businesses stated on Sunday.

The joint assertion stated that Merck, by means of certainly one of its subsidiaries, pays $200 per share for the biotechnology firm that makes a speciality of merchandise for the remedy of immunological illnesses. That represents a 75% premium to the $114.01 closing worth for Prometheus shares on Friday.

Prometheus had a market capitalization of $5.42 billion at Friday’s shut.

Merck has been in search of offers to guard itself from eventual income loss as patents on its most cancers immunotherapy Keytruda start to run out in the direction of the top of the last decade.

“The settlement with Prometheus will speed up our rising presence in immunology the place there stays substantial unmet affected person want. This transaction provides range to our general portfolio,” stated Merck Chairman and Chief Govt Robert Davis.

The deal, which was first reported by the Wall Road Journal, is predicted to shut within the third quarter of the 12 months, the businesses stated.

Merck in February forecasted 2023 earnings beneath Wall Road estimates and an anticipated steep decline in gross sales of its Covid-19 antiviral remedy.