German pharmaceutical giant Merck KGaA announced it will acquire Silence Therapeutics (NASDAQ: SLN) for about $1.3 billion in cash, sending the biotech company's shares soaring today.

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Under the agreement, Merck will pay $20 per American depositary share, representing a 130% premium to Silence's closing price of $8.68 on Friday, October 16. The acquisition values Silence at approximately $1.3 billion in equity and $1.1 billion in enterprise value.

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The deal comes just two months after Silence reported encouraging Phase 2 results for divesiran, an experimental treatment for a rare blood cancer called polycythemia vera (PV).

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What's Merck buying?

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Polycythemia vera causes the body to produce too many red blood cells, thickening the blood and increasing the risk of dangerous blood clots, strokes, and other cardiovascular complications.

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Patients often require regular blood withdrawals, known as phlebotomies, to reduce their red blood cell counts. Divesiran could offer another treatment option.

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The drug uses a technology called small interfering RNA (siRNA), which essentially switches off the production of specific proteins involved in disease. In this case, divesiran targets a gene called TMPRSS6, which helps regulate how the body uses iron. By suppressing this gene, the treatment increases levels of a hormone called hepcidin, limiting the iron available for red blood cell production.

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In August, Silence reported that 88% of patients receiving divesiran achieved a clinical response in its Phase 2 SANRECO study, compared with just 19% of patients receiving a placebo. Patients receiving divesiran also required an average of just 0.2 blood withdrawals through week 36, compared with 2.1 among those receiving placebo.

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Those results have positioned divesiran for Phase 3 development, although larger trials will still be needed to establish its safety and effectiveness.

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What investors should know

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For Silence shareholders, the acquisition provides an immediate opportunity to realize substantial gains. The $20-per-share offer represents an 82% premium to the stock's 30-day volume-weighted average price of $10.99.

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The transaction is expected to close in the first quarter of 2027, subject to shareholder, regulatory, and court approvals.

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