Silence Therapeutics PLC ( NASDAQ:SLN , FRA:XRP1 , OTC:SLNCF ), the clinical-stage biotechnology company, surged 59% to $6.11 after agreeing to a $1.3 billion takeover by Merck KGaA, the German pharmaceutical and technology group.
Merck will pay $20 in cash for each American depositary share (ADS), representing a 130% premium to Silence's closing price on October 16 and an 82% premium to its 30-day volume-weighted average price.
The proposed acquisition values Silence's equity at approximately $1.3 billion, with an enterprise value of $1.1 billion, and gives shareholders a cash exit from the company's drug development programs.
The transaction follows progress in Silence's pipeline of medicines designed to silence disease-causing genes using short interfering ribonucleic acid (siRNA) technology.
A key asset is divesiran, an experimental treatment for polycythaemia vera, a rare blood cancer characterised by excessive red blood cell production.
Silence has reported potentially best-in-class phase two data for divesiran, which aims to reduce red blood cell production by regulating the body's iron metabolism.
The company said the acquisition would give its programmes access to Merck's resources and commercial capabilities, supporting the potential progression of divesiran into phase three trials.
Merck said the deal would strengthen its capabilities in targeted treatments for specialist and rare diseases, continuing its strategy of expanding through acquisitions.
The transaction has been unanimously approved by Silence's board and is expected to complete in the first quarter of 2027, subject to shareholder approval, court sanction and regulatory clearances.
