Merck has agreed to amass Prometheus Biosciences for about $10.8 billion to bolster the corporate’s presence in immunology, the businesses stated on Sunday.

The joint assertion stated that Merck, by certainly one of its subsidiaries, can pay $200 per share for the biotechnology firm that makes a speciality of merchandise for the therapy of immunological ailments. That represents a 75% premium to the $114.01 closing value for Prometheus shares on Friday.

Prometheus had a market capitalization of $5.42 billion at Friday’s shut.

Merck has been in search of offers to guard itself from eventual income loss as patents on its most cancers immunotherapy Keytruda start to run out in direction of the top of the last decade.

“The settlement with Prometheus will speed up our rising presence in immunology the place there stays substantial unmet affected person want. This transaction provides variety to our general portfolio,” stated Merck Chairman and Chief Government Robert Davis.

The deal, which was first reported by the Wall Avenue Journal, is anticipated to shut within the third quarter of the 12 months, the businesses stated.

Merck in February forecasted 2023 earnings beneath Wall Avenue estimates and an anticipated steep decline in gross sales of its Covid-19 antiviral therapy.