Overview

• Both boards unanimously approved the all-cash deal, and a Genmab subsidiary will commence a tender for 100% of Merus shares with a minimum 80% acceptance condition that could be reduced to 75% if other conditions are met.
• Lead asset petosemtamab is an EGFRxLGR5 bispecific antibody in two Phase III head and neck cancer trials and holds two FDA Breakthrough Therapy Designations.
• In a Phase II study presented at ASCO, petosemtamab plus Keytruda showed a 79% 12‑month overall survival in 43 evaluable patients, a result that requires confirmation in Phase III.
• Genmab plans to fund the purchase with cash and about $5.5 billion in committed non‑convertible debt from Morgan Stanley, paying a 41% premium to Merus’ prior close.
• Merus shares jumped roughly 36%–38% on the news while Genmab slipped, as the buyer targets a shift toward wholly owned oncology assets and projects an initial petosemtamab launch in 2027 subject to successful trials and approvals.