Business & Markets
Merck KGaA agrees to buy Silence Therapeutics in $1.3 billion deal
The proposed cash acquisition values Silence Therapeutics’ equity at about $1.3 billion. Its lead RNAi medicine remains in clinical development, and closing is not assured.
Executive summary
- A cash offer with approvals still outstanding: Merck KGaA agreed to acquire Silence Therapeutics for $20 per American depositary share in cash. The companies put the equity value at about $1.3 billion; completion depends on customary conditions, including shareholder, court and regulatory approvals.[1][2]
- The lead medicine is investigational: Silence’s lead candidate, divesiran, is an RNA interference therapy being studied for polycythemia vera. It has not been approved for use; Merck’s announcement cites interim Phase II findings, which do not establish eventual safety or effectiveness.[3][4]
- The deal’s value does not guarantee clinical success: The acquisition would give Merck access to Silence’s RNAi platform and pipeline, but the transaction has not closed and its principal clinical asset remains under investigation. The companies expect a possible close in the first quarter of 2027, subject to conditions.[3][5]
Germany’s Merck KGaA said it had agreed to acquire London-based Silence Therapeutics for $20 per American depositary share in cash. Its filing with the U.S. Securities and Exchange Commission gives an implied equity value of approximately $1.3 billion. The company release describes enterprise value as approximately $1.1 billion; those measures differ because enterprise value accounts for items such as cash and debt.[1][2][3]
The offer represents a 130% premium to Silence’s closing ADS price on Oct. 17, according to the companies. Merck said it expects to complete the acquisition in the first quarter of 2027, but that timing is a forecast. Shareholder approval, court sanction of the scheme and regulatory clearances remain among the required steps, so the agreement is not a completed acquisition.[1][3][5]
Silence is developing medicines that use RNA interference, a biological process that can reduce production of selected proteins. Its lead candidate, divesiran, is being studied in Phase II for polycythemia vera, a blood cancer. Merck cited interim trial data in its announcement, including a response measure favoring divesiran over placebo. Those interim results are not a regulatory decision and do not establish that the drug is safe and effective for patients.[3][4]
Merck said the purchase would expand its development pipeline and add Silence’s RNAi discovery platform. Reuters and Fierce Biotech reported the acquisition announcement and the companies’ stated clinical rationale. The commercial value of the pipeline will depend on further trials, regulatory review and any eventual uptake; the deal price alone does not show that the candidate will reach the market.[3][5][4]