Copenhagen-based Genmab agreed to buy Dutch cancer specialist Merus in an $8 billion takeover, the companies said in a joint statement.
Merus shares have soared in value in recent months after the company in May announced that its drug petosemtamab works better than the current standard treatment for head and neck cancer. The drug is intended to shrink tumors.
“Petosemtamab has the potential to become a breakthrough therapy for patients with head and neck cancer,” said Dutch Genmab chief executive Jan van de Winkel.
Genmab said it believes the incorporation of Merus can help it become a global leader in biotechnology.
Merus is testing whether the drug is also effective in treating colon cancer. That market is potentially much larger and more profitable than that for head and neck cancer.
Merus was founded in 2003 and also has a location in the United States. Genmab was founded in 1999 and, in addition to its headquarters in Copenhagen, has locations around the world.
Both companies said their boards voted unanimously in favor of the acquisition.
