Merck (NYSE: MRK) announced on Monday that it will acquire Imago BioSciences (IMGO) for $36.00 per share in cash for around a total equity value of $1.35 billion.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
The acquisition is expected to close in the first quarter of next year.
Imago is a clinical-stage biopharmaceutical company developing new medicines to treat bone marrow diseases. Following the news, shares of IMGO were trading at more than a 100% premium to its closing price of $17.40 on Friday.
Robert M. Davis, President, and CEO of Merck commented, “We continue to invest in our pipeline with a focus on applying our unique capabilities to unlock the value of breakthrough science for the patients we serve. This acquisition of Imago augments our pipeline and strengthens our presence in the growing field of hematology.”
Wall Street analysts are bullish about MRK with a Strong Buy consensus rating based on 13 Buys and three Holds. The average price target for MRK is $109.40 implying an upside potential of 4.96% at current levels.
