TLDR
- Genmab A/S announces $8B deal to acquire Merus, boosting cancer pipeline.
- GMAB dips pre-market after $8B move to buy Merus and petosemtamab asset.
- Genmab targets 2027 launch for petosemtamab after Merus acquisition
- $97 per share offer values Merus at a 41% premium in Genmab’s latest deal.
- Genmab expands oncology pipeline with Merus buyout, eyes billion-dollar drug.
GMAB announced an $8.0 billion agreement to acquire Merus N.V. MRUS in an all-cash transaction. The deal values Merus at USD 97.00 per share, representing a significant premium over its recent closing price. Despite this development, GMAB stock shows a pre-market decline after a modest gain on September 26.
Acquisition Details and Strategic Fit
Genmab will acquire all Merus’ outstanding shares through a wholly owned subsidiary via a tender offer. The boards of both companies approved the deal, which is expected to close by early 2026. The agreement includes a minimum acceptance condition of at least 80% of Merus’ shares.
The addition of Merus’ lead candidate, petosemtamab, strengthens Genmab’s late-stage pipeline in oncology. Petosemtamab is a bispecific antibody currently in Phase 3 development for head and neck cancer. The U.S. FDA has designated it a Breakthrough Therapy.
Genmab expects the acquisition to support its transition to a wholly owned product model. The company aims to launch multiple proprietary programs by 2027. Management anticipates that petosemtamab will play a central role in this growth strategy.
Pipeline Expansion and Market Impact
Petosemtamab demonstrated strong results in Phase 2 trials presented at ASCO 2025. The data showed higher response rates and longer progression-free survival than standard of care. Two Phase 3 trials are currently ongoing, with interim results expected in 2026.
Genmab plans to accelerate development across additional cancer indications. Pending approvals, the company expects the first commercial launch of petosemtamab in 2027. Forecasts project the drug to reach at least one billion dollars in annual sales by 2029.
The deal highlights Genmab’s focus on long-term growth in oncology. By adding Merus’ innovative platform, the company expands its presence in the antibody therapeutics market. Analysts consider the move a strategic alignment with Genmab’s global ambitions.
Financial Structure and Stock Performance
The $97.00 per share purchase price reflects a 41% premium over Merus’ closing price of $68.89 on September 26, 2025. It also represents a 44% premium over Merus’ 30-day volume weighted average price of $67.42. The transaction totals approximately $8.0 billion.
Genmab will finance the acquisition with cash on hand and $5.5 billion in non-convertible debt. The company obtained a funding commitment from Morgan Stanley Senior Funding. Management aims to reduce leverage to below three times EBITDA within two years of closing.
GMAB stock closed at $29.07, up 0.80% on September 26, but pre-market trading showed a decline to $28.27. The dip reflects short-term bearish sentiment despite the strategic potential of the deal. Market participants are evaluating the financial and operational impact on both companies.
