Companies
Silence Therapeutics rallies on Merck KGaA cash takeover deal
Germany's Merck KGaA agreed to buy Silence Therapeutics for cash, and the London biotech's shares surged 125.6% on Monday to close near the offer price.
Quick Read
- Merck KGaA agreed to buy Silence Therapeutics for cash, and the shares surged 125.6% to close at $19.58.
- The purchase gives Merck KGaA siRNA technology and divesiran, an experimental treatment for a rare blood cancer.
- The companies expect the deal to close in the first quarter of 2027, pending shareholder, regulatory and court approvals.
What happened to Silence Therapeutics shares?
Silence Therapeutics (Nasdaq: SLN) shares surged 125.6% on Monday, Oct. 19, after Merck KGaA agreed to buy the company for cash. The stock closed at $19.58, up from $8.68 on Friday.
Why it matters: That close set a new 52-week high, the highest price in the past year. Trading was far heavier than usual, with shares worth $1.4 billion changing hands.
Silence trades in the U.S. as American depositary shares. These are certificates that stand for shares of a foreign company.
Why does Merck KGaA want Silence?
Silence is a London-based biotech. Its technology is known as siRNA, short for small interfering RNA.
The deal gives Merck KGaA that technology and an experimental drug called divesiran. The drug targets polycythemia vera, a rare blood cancer in which the body makes too many red blood cells. That raises the risk of blood clots.
The U.S. Food and Drug Administration has granted divesiran Fast Track and Orphan Drug designations. These labels aim to speed review and support drugs for rare diseases. Silence recently reported encouraging mid-stage trial results.
Merck KGaA CEO Kai Beckmann said the purchase would strengthen the company's focus on specialty and rare diseases. It builds on Merck KGaA's acquisition of SpringWorks Therapeutics last year.
Why did the shares stop just short of the offer?
The cash offer is far above the price Silence traded at before the news, according to the companies. Shares of a company being bought often trade a little below the agreed price until the deal closes.
That small gap may reflect the wait for closing and the chance the deal falls through.
Silence Chairman and interim CEO Iain Ross said the agreement came out of a competitive sale process. He said Merck KGaA's resources and sales reach could speed up late-stage development of divesiran.
What comes next?
What’s next: The companies expect to complete the deal in the first quarter of 2027. It still needs approval from shareholders, regulators and a court.
The takeover will use a U.K. scheme of arrangement, a court-supervised process under British company law.
Silence's board unanimously backed the deal. Some of its shareholders have also already agreed to support it.
For readers
What it could mean for you: The deal matters most to people who own Silence Therapeutics shares directly. With a cash offer on the table, the stock may now track the agreed price more than drug trial news. Holders could receive cash when the deal closes, which the companies expect in the first quarter of 2027. Until then, the share price might move if approvals from shareholders, regulators or the court face delays. If the deal were to fall apart, the stock could give back much of Monday's gain.
Questions and answers
Who is buying Silence Therapeutics?
Germany's Merck KGaA agreed on Monday to buy Silence Therapeutics for cash. The Silence board unanimously approved the deal.
Why did Silence Therapeutics stock rise?
The shares surged 125.6% on Monday after the cash takeover was announced. They closed at $19.58, near the offer price and at a new 52-week high.
When will the Merck KGaA and Silence deal close?
The companies expect to complete it in the first quarter of 2027. It needs approval from shareholders, regulators and a court.
What is divesiran?
Divesiran is Silence's experimental drug for polycythemia vera, a rare blood cancer that causes too many red blood cells. The U.S. Food and Drug Administration has given it Fast Track and Orphan Drug designations.
The numbers
| Silence Therapeutics (SLN) price | $19.58 |
|---|---|
| Silence Therapeutics (SLN) change | +125.58% |
| Silence Therapeutics (SLN) 52-week high | $19.58 |
| S&P 500 change | +0.41% |
| 10-year Treasury yield | 5.15% |
Monday’s close
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