Merck & Co. Inc. MRK said Tuesday it agreed to pay up to $610 million to acquire Caraway Therapeutics, a preclinical biopharmaceutical company pursuing new approaches for the treatment of genetically defined neurodegenerative and rare diseases. The company’s pipeline includes novel, small-molecule therapeutics for the treatment of genetically defined neurodegenerative and rare diseases. Investors in Caraway Therapeutics include SV Health Investors and its Dementia Discovery Fund, AbbVie Ventures, Amgen Ventures, Eisai Innovation and Merck’s MRL Ventures Fund, which invested in the company in 2018. Merck’s upfront payment for Caraway Therapeutics will be expensed by the company in the fourth quarter of 2023 and included in non-GAAP results. Merck stock was down by 0.4% in premarket trading on Tuesday.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
