Germany’s Merck to Buy U.K. Biotech Silence Therapeutics for $1.3 Billion

Germany’s Merck MRK -1.42%decrease; red down pointing triangle KGaA said it agreed to buy U.K. biotech company Silence Therapeutics for $1.3 billion, adding an experimental medicine for rare disease polycythemia vera to its drug pipeline.

Merck said Monday that it is offering $20 in cash for each American depositary share for Nasdaq-listed Silence Therapeutics, more than double the target’s closing price as of Friday.

The German life-sciences and chemicals group said the deal aims to strengthen its rare-disease pipeline by adding a drug candidate, divesiran, that is ready to enter late-stage clinical trials developed by Silence Therapeutics, which specializes in a gene-silencing technology called short interfering RNA.

“Following the acquisition of SpringWorks Therapeutics last year, we continue to transform our pipeline toward areas of high specialization and unmet medical need, with an ongoing commitment to external innovation,” Merck Chief Executive Kai Beckmann said.

Silence Therapeutics Chairman and Interim Principal Executive Officer Iain Ross said Merck has the scale, resources and commercial capabilities to accelerate the late-stage development of the drug.