Merck KGaA to Acquire Silence Therapeutics, Adding siRNA Candidate to Pipeline

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Merck KGaA, Darmstadt, Germany, entered a definitive agreement to acquire Silence Therapeutics, a London-based global clinical-stage biotechnology company. Silence has focused on pioneering design and development of small interfering RNA (siRNA) therapies in areas of high unmet need.

The deal represents an enterprise value of $1.1 billion and equity value of approximately $1.3 billion. The transaction notably includes Divesiran, a potentially best-in-class, Phase III-ready siRNA investigational therapy.

About siRNA Candidate

Divesiran, dosed subcutaneously every three months, is in development for treatment of phlebotomy-dependent polycythemia vera (PV). PV is a type of rare blood cancer, a chronic myeloproliferative neoplasm, characterized by excessive production of red blood cells. This can result in a higher rate of death from cardiovascular and thrombotic events.

Merck KGaA Executive Board Chairman and Group CEO Kai Beckmann says this strengthens capabilities in targeted specialty and rare diseases.

“We continue to transform our pipeline toward areas of high specialization and unmet medical need,” Beckmann said. “[This] follows our strategic priority to address attractive end markets also through M&A, creating value over the mid- to long-term.”

Merck Moving Forward

Meanwhile, Danny Bar-Zohar, Merck KGaA Executive Board member and CEO Healthcare, calls the Silence acquisition a “significant step forward.”

“The planned acquisition also provides an entry point into hematology through a biologically validated mechanism of action,” Bar-Zohar said. “We are advancing our efforts to build a differentiated, sustainable pipeline as we bring more medicines to more patients, faster.”

Silence Speaks Volumes

“We are pleased to have reached this agreement,” Silence Interim Principal Executive Officer and Board Chairman Iain Ross said. “It follows a competitive sale process and delivers significant, immediate and certain value to our shareholders. This transaction … reflects the important progress we have made advancing our differentiated siRNA pipeline. It also provides a new home for our innovative programs within Merck KGaA.”