Merck Acquires Prometheus Biosciences for $10 Billion Amid Keytruda Revenue Loss Fears

Merck & Co is in late-stage talks to acquire Prometheus Biosciences Inc according to the WSJ.
The acquisition will give Merck access to new immune disease treatments and help offset eventual revenue losses from its bestselling cancer drug Keytruda.
Merck will take a $10.3 billion charge this year related to the Prometheus deal according to another source.
The deal will help Merck build up its autoimmune drug portfolio according to analysts at Citi who rate Merck's stock a "Buy."
Prometheus' lead drug candidate, PRA023, has shown positive mid-stage trial data for ulcerative colitis and Crohn's disease though it is not yet approved.