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Shares of SpringWorks Therapeutics soared on Monday following a report that German medical firm Merck KGaA could acquire the company.
A deal between the German company and the U.S.-based cancer treatment maker SpringWorks could be announced in the coming weeks, Reuters reported.
SpringWorks shares jumped Monday to their highest closing price in nearly three years.
SpringWorks Therapeutics stock surged Monday on a report that a German medical tech giant could be close to acquiring the company.
Citing multiple people familiar with the discussions, Reuters reported Monday that SpringWorks and Merck KGaA, which is listed in Germany, are in talks and an agreement could be reached in the coming weeks. Reuters later reported that Merck confirmed "advanced" talks.
SpringWorks (SWTX) is developing several treatments for different types of cancers and tumors. Merck KGaA, which bills itself as "the world's oldest pharmaceutical and chemical company," is a separate entity from the U.S. pharmaceutical company with the same name.
Shares of SpringWorks finished Monday up some 34% at their highest close since April 2022, handing back some earlier gains. Merck's German-listed shares ended the trading session down about 3%.
Merck has said it is prepared to make new acquisitions after its cash reserves grew during the pandemic amid rising demand for its products, Bloomberg reported.
A SpringWorks spokesperson declined to comment on the report. Merck did not immediately respond to a request for comment.
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