Merck has agreed to amass Prometheus Biosciences for about $10.8 billion to bolster the corporate’s presence in immunology, the businesses mentioned on Sunday.

The joint assertion mentioned that Merck, by one in every of its subsidiaries, can pay $200 per share for the biotechnology firm that focuses on merchandise for the remedy of immunological ailments. That represents a 75% premium to the $114.01 closing worth for Prometheus shares on Friday.

Prometheus had a market capitalization of $5.42 billion at Friday’s shut.

Merck has been on the lookout for offers to guard itself from eventual income loss as patents on its most cancers immunotherapy Keytruda start to run out in direction of the tip of the last decade.

“The settlement with Prometheus will speed up our rising presence in immunology the place there stays substantial unmet affected person want. This transaction provides range to our total portfolio,” mentioned Merck Chairman and Chief Government Robert Davis.

The deal, which was first reported by the Wall Avenue Journal, is anticipated to shut within the third quarter of the yr, the businesses mentioned.

Merck in February forecasted 2023 earnings under Wall Avenue estimates and an anticipated steep decline in gross sales of its Covid-19 antiviral remedy.