Pharmaceutical giant Merck (NYSE:MRK) is eyeing a deal to acquire Harpoon Therapeutics (NASDAQ:HARP) worth $700 million, according to a Bloomberg report. Following the news, shares of HARP, an immuno-oncology therapies developer, surged about 102% at the time of writing, while MRK stock was down 0.4%.
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According to the report, MRK is planning to pay $23 per share to Harpoon’s shareholders, which reflects a premium of 118% to Harpoon’s last closing price of $10.55.
Benefits of the Deal
The acquisition would give MRK access to promising T-cell-engaging candidates, like HPN216 and HPN301, both currently in clinical trials.
Harpoon’s portfolio includes a promising investigational therapy that focuses on delta-like ligand 3 (DLL3), a molecule expressed at high levels in both small-cell lung cancer and neuroendocrine tumors. In October 2023, HARP disclosed positive early-stage clinical data for this treatment.
These therapies will likely expand Merck’s presence in the oncology space.
Is Merck a Good Stock to Buy Now?
MRK has undertaken several acquisitions recently to expand its new product pipeline. Notably, in October, it secured the rights to sell Daiichi Sankyo Co.‘s three experimental cancer drugs in a $4 billion deal. Before that, the company revealed plans to acquire Prometheus, a maker of autoimmune drugs, for $10.8 billion. The company’s efforts to grow through acquisitions keep analysts bullish about its future prospects.
With 14 Buy and two Hold recommendations, Merck stock sports a Strong Buy consensus rating on TipRanks. Analysts’ average price target of $127.21 implies 8.5% upside potential from current levels. Shares of the company have gained 9.2% over the past year.
