The deal, unanimously approved by both Boards of Directors, centers on Merus’ late-stage asset, petosemtamab, a bispecific antibody therapy currently in Phase 3 trials for recurrent/metastatic head and neck cancer. The acquisition accelerates Genmab’s strategic shift toward a wholly owned model, significantly expanding its proprietary pipeline and solidifying the company’s status as a global biotechnology powerhouse.
The move is a boon for the robust New Jersey life sciences ecosystem, reinforcing the state’s role in cutting-edge cancer research and commercialization. Genmab has committed heavily to the Garden State, recently expanding its Plainsboro presence to over 270,000 square feet and adding hundreds of new jobs, citing the region’s strong talent pool and supportive environment.
Driving transformative growth
Genmab intends to acquire all of Merus’ common shares for $97.00 per share, representing a premium of approximately 41% over Merus’ closing stock price. The transaction is expected to close by early in the first quarter of 2026.
“The proposed acquisition of Merus clearly aligns with our long-term strategy. It has the potential to significantly accelerate our evolution into a global biotechnology leader by providing durable growth for the company well into the next decade,” Jan van de Winkel, president and CEO of Genmab said. “Petosemtamab has the potential to be a transformational therapy for patients living with head and neck cancer.”
Petosemtamab is an EGFRxLGR5 bispecific antibody that has already received two Breakthrough Therapy Designations from the U.S. Food and Drug Administration (FDA). Compelling Phase 2 data presented earlier this year showed substantially higher response rates than the current standard of care.
Focus on patient impact and New Jersey jobs
The addition of petosemtamab to Genmab’s portfolio means the company expects to have four proprietary programs driving multiple new drug launches by 2027. Subject to clinical results and regulatory approvals, Genmab anticipates the initial launch of petosemtamab in 2027, with expectations for it to generate over $1 billion in annual sales by 2029 and multi-billion-dollar potential thereafter.
This commercialization pipeline directly benefits Genmab’s expanded operations in Plainsboro, where the U.S. headquarters manages its commercial, R&D, and administrative functions.
“We believe Genmab has the right vision and experience to advance petosemtamab in recurrent/metastatic head and neck cancer and beyond,” Dr. Bill Lundberg, president and CEO of Merus said.
The acquisition is a significant validation of Genmab’s commitment to becoming a fully integrated biotechnology leader, fueled in part by its growing strategic presence in the central New Jersey life sciences corridor. Genmab plans to fund the $8 billion transaction through a combination of cash on hand and approximately $5.5 billion in debt financing.
