Pharmaceutical giant Merck has agreed to acquire Caraway Therapeutics, a biopharmaceutical company focused on developing treatments for neurodegenerative and rare diseases. Merck will acquire Caraway through a subsidiary. The deal, valued at up to $610 million, includes an undisclosed upfront payment and contingent milestone payments. Merck plans to expense the upfront payment in the fourth quarter of 2023.
Caraway Therapeutics has built a pipeline of small-molecule therapeutics for genetically defined neurodegenerative and rare diseases, with a focus on modulating lysosomal function. The acquisition will allow Merck to leverage Caraway’s expertise in this area and advance its discovery and preclinical programs.
The transaction is subject to regulatory approvals and is expected to strengthen Merck’s position in neurodegenerative disease research and development. Merck has been a shareholder in Caraway Therapeutics since 2018 through its MRL Ventures Fund.
