In a recent update, Genmab buys cancer biotech Merus by way of putting down almost $8bn in order to take over the biotech that’s Netherlands-based, along with its oncology pipeline when it comes to bispecific antibodies.
As per the acquisition agreement, Genmab is going to buy all of the common shares of Merus for $97 apiece; that happens to represent a 41% premium to the closing price on September 26. The companies anticipate completing the transaction within the first quarter of 2026, pending all the regulatory clearances and also with the approval of a minimum of 80% of the Merus shareholders.
Reporting from Bloomberg News on September 28 went on to reveal numerous pharmas have been involved with the cancer biotech in recent weeks, and Genmab appears to have been leading the race. Genmab as well as Merus were in advanced talks, as per Bloomberg, which went on to cite sources requesting anonymity and who also cautioned that, at that time, a deal wasn’t guaranteed.
Apparently, it was BMO Capital Markets that addressed the rumors through an investor note on the morning of September 30, before the official announcement of the acquisition.
While the analysts went on to concede that the takeover talks did come as a little surprise considering how the pipeline of Merus was performing, such a kind of deal would indeed point towards the rising interest when it comes to biotech. It is well to be noted that the shares of Merus have shot up 63% year-to-date.
In one of the prepared statements on September 29, alongside the acquisition announcement, the CEO of Merus, Bill Lundberg, acknowledged Genmab as a leader when it comes to antibody therapeutics, therefore stressing that the Danish pharma happens to have the right vision as well as experience so as to take petosemtamab, its star asset, forward.
Petosemtamab happens to be a bispecific antibody, which happens to be designed to target the EGFR as well as the LGR5 proteins, which is a mechanism that goes on to activate the anti-cancer activity’s immune system. Apparently, it was in May 2025 that the biotech announced that petosemtamab went on to ace its Phase II trial in the head-and-neck squamous cell carcinoma, therefore hitting a total 79% survival rate at 12 months when teamed with Keytruda from Merck. The regimen also elicited a total response rate of 63% as well as a median progression-free survival rate coming to 9 months.
William Blair, the analysts at the time, had said that petosemtamab happened to have the best-in-disease profile in terms of the indication, unlocking a probable blockbuster market choice for Merus. It is well to be noted that even the Leerink analysts happened to be similarly bullish on petosemtamab, thereby confirming that its combination along with Keytruda could very well go on to become the benchmark in care in terms of this disease.
As Genmab buys cancer biotech Merus, it also happens to read positively for the broader biopharma industry, as per BMO on September 30, 2025. According to the analysts, they are indeed encouraged by news of M&A discussions after lagging M&A activity in the last few years, pointing specifically to $4.9bn from Pfizer of Metsera recently.
According to the analysts, the deals, they added, could very well start to give out much broader M&A across the sector.
