Merck Acquires Silence Therapeutics for $1.3 Billion to Boost Rare Disease Pipeline
German pharmaceutical giant Merck is significantly strengthening its ambitions in the rare disease sector through the acquisition of Silence Therapeutics, a UK-based biotechnology company specializing in RNA-based therapies.
Announced on October 19, 2026, the deal is valued at approximately $1.3 billion (roughly over €1 billion in equity value). The enterprise value, excluding cash, stands at approximately $1.1 billion.
Strategic Focus: Accelerating Genetic Targeting
This acquisition is designed to enable Merck to accelerate the development of drugs that directly target the genetic mechanisms underlying specific diseases. Central to this strategy is divesiran, a candidate drug intended to treat Vaquez’s polycythemia (polycythemia vera), a rare blood disorder characterized by the overproduction of red blood cells.
Divesiran utilizes small interfering RNA (siRNA) technology, which works by blocking specific genetic messages before they can lead to protein production. In a Phase II clinical trial, divesiran demonstrated an impressive 88% response rate, compared to just 19% under placebo. The drug is now expected to advance to Phase III, subject to the continuation of its clinical development.
Deal Terms and Financial Structure
To secure approval from Silence Therapeutics’ shareholders, Merck is offering $20 in cash per American Depositary Share (ADS), with each ADS representing three ordinary shares.
- Premium: The offer represents a 130% premium over the closing price on October 16, 2026, and an 82% premium over the 30-day volume-weighted average price (VWAP).
- Timeline: The transaction is expected to close in Q1 2027, subject to shareholder approval and necessary regulatory clearances.
- Financing: Merck plans to finance the acquisition through new debt issuances.
Beyond divesiran, the German group will gain access to Silence Therapeutics’ proprietary technology platform and several experimental programs, including those focused on:
- Cardiovascular diseases
- Cholesterol management
- Obesity
- Immune disorders
Industry Implications
This acquisition highlights a major trend in the pharmaceutical industry: large-cap labs are increasingly looking to complement their internal research by acquiring biotechs capable of developing innovative therapies. For Merck, the primary objective is to bolster its portfolio of specialized medicines and secure new growth drivers, while assuming the clinical and financial risks associated with developing experimental molecules.
