Pharmaceutical company Merck (NYSE:MRK) has finally confirmed the acquisition of Harpoon Therapeutics (NASDAQ:HARP), a clinical-stage immunotherapy company, for an approximate total equity value of $680 million. Merck will pay $23 in cash for every Harpoon share. Harpoon Therapeutics skyrocketed in trading following the news.
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As a part of this acquisition, Merck will have access to HPN328, an investigational T-cell engager being examined in certain patients with small-cell lung cancer and neuroendocrine tumors. Harpoon utilizes its proprietary TriTAC and ProTriTAC platforms to develop T-cell engagers. The company’s TriTAC platform directs immune cells to kill tumors, while its ProTriTAC platform employs a prodrug concept, activating the therapeutic T-cell engager specifically at the tumor site.
Merck anticipates closing the deal in the first half of this year and will account for it as an asset acquisition. The company expects to record a non-tax charge of around $650 million, or around $0.26 per share, that will be included in the results of the quarter that the acquisition closes in.
Is Merck a Good Stock to Buy?
Analysts are bullish about MRK stock, with a Strong Buy consensus rating based on 14 Buys and two Holds. Over the past year, MRK stock has gone up by 9%, and the average MRK price target of $127.21 implies an upside potential of 8.4% at current levels.
