Merck (NYSE: MRK) acquired Caraway Technologies, a Cambridge, MA-based preclinical biopharmaceutical company, for a total potential consideration of up to $610M.
The sum includes an undisclosed upfront payment as well as contingent milestone payments. The upfront payment will be expensed by Merck in the fourth quarter of 2023 and included in non-GAAP results. Under the terms of the agreement, Merck, through a subsidiary, will acquire all outstanding shares of Caraway with earnout milestones associated with the development of certain pipeline candidates. The Board of Directors of Caraway Therapeutics has approved the transaction. Merck, through its MRL Ventures Fund, has been a shareholder of Caraway Therapeutics since 2018.
With the acquisition, Merck underscores its ongoing commitment to developing treatments for neurodegenerative diseases.
Led by Martin D. Williams, chief executive officer, Caraway is a preclinical biopharmaceutical company pursuing innovative approaches for the treatment of genetically defined neurodegenerative and rare diseases. The company has built a pipeline of novel, small-molecule therapeutics for the treatment of genetically defined neurodegenerative and rare diseases. The company was backed by SV Health Investors and its Dementia Discovery Fund, AbbVie Ventures, Amgen Ventures, Eisai Innovation and MRL Ventures Fund.
FinSMEs
22/11/2023