Merck to acquire Silence Therapeutics for $1.3 billion

German pharmaceutical and technology group Merck KGaA has agreed to acquire UK-based biotech firm Silence Therapeutics in an all-cash transaction valued at approximately $1.3 billion in equity. The deal, which Merck expects to close in the first quarter of 2027, involves a payment of $20 per American Depositary Share, representing a significant premium over recent trading prices.

The acquisition is a strategic move to expand Merck’s presence in the rare disease market, specifically through Silence’s RNA interference (siRNA) platform. A central asset in the deal is divesiran, an experimental drug currently preparing for Phase 3 clinical trials. Divesiran is designed to treat polycythemia vera, a rare blood cancer characterized by the overproduction of red blood cells.

In Phase 2 clinical studies, divesiran demonstrated an 88% response rate compared to 19% for the placebo group. The therapy aims to reduce the need for frequent phlebotomy by targeting the TMPRSS6 gene to regulate iron metabolism. This acquisition follows Merck’s recent pattern of high-value biotech purchases, including SpringWorks Therapeutics and Bio-Techne.