This Dutch Drugmaker’s Stock Is Jumping 38%. Here’s Why It’s Being Acquired.

Genmab will acquire Merus for $97 a share in an all-cash deal. (Dreamstime)

Key Points

• Genmab will acquire Merus, a Dutch biotechnology company, for approximately $8 billion in an all-cash transaction.
• The acquisition, priced at $97 a share, grants Genmab access to petosemtamab, Merus’ late-stage cancer therapy.
• Petosemtamab, currently in Phase 3 trials, is projected to generate $1 billion in annual revenue by 2029.

Genmab will acquire Merus, a Dutch biotechnology company, in an all-cash transaction worth around $8 billion.

A Genmab subsidiary will pay $97 a share to complete the deal, which will give the Danish biotechnology company access to petosemtamab, Merus’ late-stage breakthrough cancer therapy. The acquisition is expected to close early in the first quarter of 2026.

Merus stock, which closed Friday at $68.89, soared 38% to $94.91 in premarket trading Monday. New York-listed American depositary receipts of Genmab fell 4.1% to $27.89.

Petosemtamab is currently in Phase 3 trials for head and neck cancer, with interim results anticipated in 2026. Genmab anticipates the drug could have an initial launch in 2027, subject to trial results and regulatory approvals.

The deal “has the potential to significantly accelerate our evolution into a global biotechnology leader by providing durable growth for the company well into the next decade,” said Genmab CEO Dr. Jan van de Winkel. The company believes petosemtamab has $1 billion yearly revenue potential by 2029, with “multi-billion-dollar” annual potential thereafter.

Write to Nate Wolf at nate.wolf@barrons.com