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Merck KGaA to buy Silence Therapeutics for $1.3 billion

Merck KGaA to buy Silence Therapeutics for $1.3 billion

Money Moves

All-cash deal gives German drugmaker an RNA-silencing therapy for polycythemia vera

Today: Merck KGaA announces $1.3 billion Silence buyout

Overview

Updated 1 hour ago

Merck KGaA agreed Monday to buy Silence Therapeutics for $1.3 billion. The German drugmaker is paying a 130% premium for a British biotech whose RNA-based drug for a rare blood disorder passed a key mid-stage test. The all-cash deal hands Merck KGaA divesiran, a therapy that silences a gene to curb excess red blood cell production in polycythemia vera patients.

The acquisition is Merck KGaA's second major rare-disease bet in two years, after its purchase of SpringWorks Therapeutics. If divesiran wins approval, it would compete with Takeda and Protagonist's Mimrylo and Incyte's Jakafi. Cantor Fitzgerald analysts wrote that divesiran could match Mimrylo's forecasted blockbuster sales.

Why it matters

A 130% premium bet that an RNA-silencing drug can beat established treatments for a rare blood disorder affecting tens of thousands of patients.

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Key Indicators

$1.3B
Equity value of acquisition
Merck KGaA will pay $1.3 billion in cash for Silence Therapeutics.
130%
Premium to Silence's closing price
The $20 per ADS offer is 130% above Silence's closing price on October 16, 2026.
$20.00
Cash per American Depositary Share
Each ADS represents three ordinary shares, so shareholders get $6.67 per ordinary share.
Q1 2027
Expected deal close
The deal is expected to close in the first quarter of 2027.

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Timeline

2025 October 2026

3 events Latest: Today
  1. Merck KGaA announces $1.3 billion Silence buyout

    Today Deal

    Merck KGaA announces the deal, paying $20 per American Depositary Share, a 130% premium.

  2. Silence signs acquisition agreement with Merck KGaA

    Deal

    Silence enters a transaction agreement for the $1.3 billion all-cash acquisition.

  3. Merck KGaA buys SpringWorks Therapeutics

    Deal

    Merck KGaA acquires SpringWorks for drugs targeting two rare tumor disorders.

Scenarios

1

Merck KGaA completes Silence acquisition

Likely Resolves by Q1 2027

Discussed by: Merck KGaA, Silence Therapeutics, William Blair analyst Myles Minter

The deal closes in the first quarter of 2027 after Silence shareholders approve and regulators clear the transaction. Key shareholders holding 14% of voting power have already agreed to support the deal. Silence shareholders receive $20 per American Depositary Share.

2

Deal collapses before closing

Unlikely Resolves by Q1 2027

Discussed by: Not widely predicted; deal has key shareholder support

Silence shareholders reject the deal, regulators block it, or a higher bidder emerges. The 130% premium makes a competing offer unlikely, and the 14% shareholder support makes rejection difficult.

3

Divesiran enters Phase 3 trial

Likely Resolves by End of 2027

Discussed by: Cantor Fitzgerald analysts, Merck KGaA

Merck KGaA launches a Phase 3 trial for divesiran in polycythemia vera. Cantor Fitzgerald analysts suggested the drug's strong Phase 2 efficacy might allow a smaller trial than the nearly 300 patients Takeda and Protagonist enrolled for Mimrylo.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

April 2018

Novartis buys AveXis (2018)

Novartis agreed to pay $8.7 billion for AveXis, a biotech developing Zolgensma, a gene therapy for spinal muscular atrophy. The deal valued AveXis at a large premium to its market price.

Then

The deal closed in May 2018, and Zolgensma won FDA approval in May 2019.

Now

Zolgensma became one of the most expensive drugs ever, priced at $2.1 million per dose, and validated big pharma's willingness to pay up for rare-disease therapies.

Why this matters now

Like Novartis-AveXis, Merck KGaA is paying a large premium for a single experimental rare-disease therapy with blockbuster potential.

August 2018

Alnylam's Onpattro approval (2018)

The FDA approved Alnylam's patisiran, sold as Onpattro, the first RNA interference therapeutic ever approved. The drug treats a rare nerve disease called hereditary transthyretin amyloidosis.

Then

The approval validated RNAi as a viable drug platform after two decades of development.

Now

It opened the door for a wave of RNA-based medicines, including the siRNA approach Silence Therapeutics uses.

Why this matters now

RNAi is now a proven drug modality, which is why Merck KGaA is willing to pay a 130% premium for Silence's siRNA platform.

2025

Merck KGaA buys SpringWorks (2025)

Merck KGaA acquired SpringWorks Therapeutics, gaining drugs for two rare tumor disorders. The deal was part of the company's push into rare diseases.

Then

Merck KGaA gained products with existing revenue.

Now

The Silence deal extends the same strategy, but with a Phase 3-stage candidate that still needs clinical and regulatory work.

Why this matters now

The two deals show Merck KGaA's pattern: buy rare-disease assets, pay premiums, and build a specialty pipeline.

Sources

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