Merck (MRK) revealed that it has completed the acquisition of Acceleron Pharma Inc. (XLRN) through its subsidiary Astros Merger Sub, Inc., in an all-cash transaction valued at $180 per share.
Merck develops pharmaceutical and vaccine products and offers healthcare solutions addressing animal health. (See Merck stock chart on TipRanks)
The company plans to merge Astros Merger Sub, Inc. with and into Acceleron, where Acceleron will be the surviving entity. Also, shares of Acceleron will no longer be listed or traded on the Nasdaq Global Market.
The CEO and President of Merck, Rob Davis, said, “This is an important and strategic opportunity for our company to continue growing our cardiovascular portfolio and pipeline, that builds on our long and proud legacy in cardiovascular disease and further bolsters our business development strategy.”
“Fueled by Acceleron’s groundbreaking research, we are excited to explore the opportunities and possibilities ahead to reach even more patients by addressing this critical health need,” he added.
Last week, Mizuho Securities analyst Mara Goldstein assigned a Buy rating to the stock with a price target of $100 (upside potential of 22.5%).
Overall, the stock has a Moderate Buy consensus rating based on 5 Buys and 5 Holds. The average Merck price target of $96.50 implies 18.2% upside potential.
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Hedge Fund Activity
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Merck is currently Very Negative, as the cumulative change in holdings across all 21 hedge funds that were active in the last quarter was a decrease of 8.8 million shares.
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