Investing.com -- Shares of SpringWorks Therapeutics Inc (NASDAQ:SWTX) surged higher Thursday afternoon on reports that a potential takeover of the company by Germany’s Merck KGaA (ETR:MRCG) is getting close.
This afternoon, The Wall Street Journal reported that the two companies are near a $47 per share takeover deal and a definitive agreement could be announced as soon as Monday, citing people familiar with the matter.
Shares of SpringWorks last traded up 8% to $44.50.
The potential deal has been in the works since at least February, when Merck KGaA confirmed it was in advanced talks to acquire the cancer and rare diseases drugmaker.
Earlier in the week, an analyst at Barclays (LON:BARC) highlighted that a just-concluded CHMP meeting on SpringWorks’ Ogsiveo could help de-risk the potential deal. EU approval of Ogsiveo is seen as a key catalyst for a takeover.
Ogsiveo is the first FDA-approved therapy for patients with desmoid tumors who require systemic treatment. The drug was approved by the FDA in November 2023.