Merck has held talks over a more than $3bn acquisition of Swiss biotechnology group MoonLake Immunotherapeutics, as the US pharmaceutical company seeks to replenish its drug pipeline. The New Jersey-based drugmaker submitted a nonbinding offer for MoonLake earlier this year, valuing the business in excess of $3bn, a premium to its $2.6bn market value, according to three people familiar with the matter. The initial approach was rejected but talks could be revived, the people said. Merck’s approach for US-listed MoonLake ahead of late-stage clinical data for its flagship drug — a treatment for hidradenitis suppurativa, a chronic form of acne — puts the biotech company on a strong footing to get sold, the people said. However, they added that there was no guarantee a deal would happen and there was a possibility that other buyers would emerge. Founded in 2021 by a former McKinsey partner Jorge Santos da Silva, MoonLake is testing its lead drug sonelokimab in phase-three trials as a treatment for hidradenitis suppurativa in adolescents and adults, as well as a chronic inflammatory disease known as psoriatic arthritis. Morgan Stanley and Goldman Sachs are advising MoonLake on the sale process.

Full report : Merck made $3 billion-plus offer for MoonLake—and could revive interest in late-phase biotech.