Genmab’s $8 Billion Merus Acquisition Signals Major Expansion of Oncology Pipeline
Strategic Deal Accelerates Genmab’s Push Into Proprietary Drug Development
Genmab (NASDAQ: GMAB) has announced a definitive agreement to acquire Merus (NASDAQ: MRUS) for $97.00 per share in cash, valuing the deal at approximately $8.0 billion. This move is set to add petosemtamab—a promising late-stage, bispecific antibody therapy for head and neck cancer—to Genmab’s growing oncology pipeline. The acquisition aligns with Genmab’s ongoing transition toward a wholly owned model, with the goal of launching several new proprietary therapies by 2027 and fueling durable revenue growth through the next decade.
Petosemtamab Poised as a Potential Blockbuster: Key Facts
The jewel in Merus’ pipeline, petosemtamab, has secured two FDA Breakthrough Therapy Designations and demonstrated impressive Phase 2 results with overall response rates and progression-free survival notably above current standards of care. With two Phase 3 trials underway, top-line interim readouts are expected in 2026, and Genmab anticipates an initial launch in 2027 if approved. The therapy’s strong efficacy profile could make it both a first- and best-in-class option for patients with recurrent/metastatic head and neck cancer.
| Asset | Indication | Phase | Breakthrough Therapy Designations | Expected Readout |
|---|---|---|---|---|
| Petosemtamab | Head and Neck Cancer (1st/2nd/3rd line) | Phase 3 | 2 (First and Second Line) | 2026 |
Deal Structure Reflects Genmab’s Commitment to Growth and Financial Prudence
The $97.00 per share offer represents a substantial premium—about 41% above Merus’ closing price on September 26, 2025. Genmab plans to fund the deal through a combination of cash on hand and $5.5 billion in new, prepayable non-convertible debt, while targeting a gross leverage ratio below 3x within two years post-closing. Importantly, the transaction is expected to be accretive to EBITDA by the end of 2029, and Genmab estimates petosemtamab could achieve at least $1 billion in annual sales that same year, with multi-billion revenue potential beyond 2029.
| Deal Value | Premium to MRUS (Sep 26, 2025) | Debt Financing | EBITDA Accretion | Target Leverage |
|---|---|---|---|---|
| $8.0 billion | 41% | $5.5 billion | End of 2029 | <3x by Year 2 Post-Close |
Acquisition to Bolster Genmab’s Oncology Pipeline and Launch Schedule
With this acquisition, Genmab will boost its late-stage development assets, aiming to launch four proprietary therapies by 2027. The transaction further solidifies Genmab’s expertise in bispecific antibody therapeutics, with an eye toward expanding petosemtamab into additional indications and earlier lines of therapy. Company leadership from both Genmab and Merus emphasize that the combined portfolio will be well positioned for commercial and scientific success, citing a strong foundation in antibody technology and clinical execution.
What’s Next: Conference Call and Investor Updates
Genmab will host a conference call today to discuss the deal, providing an opportunity for investors and analysts to learn more about the acquisition’s financial and clinical impact. The transaction remains subject to standard closing conditions, including shareholder and regulatory approvals, and is expected to close by early 2026.
Key Takeaway: Transformational Move for Genmab, Multi-Billion Dollar Potential for Petosemtamab
This bold acquisition marks a significant shift in Genmab’s business model and pipeline ambitions. If petosemtamab’s Phase 3 data confirms the early promise, Genmab could be set to drive sustained growth—and perhaps shake up the competitive landscape in oncology therapeutics well into the next decade.
At a Glance: Genmab’s Market Snapshot
| GMAB Stock Price | Change | % Change |
|---|---|---|
| $30.36 | $1.03 | 3.51% |
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