Merck has announced the acquisition of Rosetta Inpharmatics.
Merck & Co. has announced that it will buy Rosetta Inpharmatics, a maker of software and equipment that speeds the development of gene-based drugs. The $620 million purchase will make Rosetta (founded in 1996) a wholly owned Merck subsidiary operating within Merck Research Laboratories, although Rosetta will maintain its name, facilities and workforce. The acquisition is subject to antitrust review, as well as approval from Rosetta stockholders and is expected to be completed during Q3 2001.
Merck has demonstrated, by launching its venture capital fund, a desire to take ownership of the technologies used to improve the development of its pharmaceutical products. This is wise, since it allows Merck to participate in shaping the direction that new technologies take so that they best meet Merck’s needs, as well as allowing Merck exclusive or priority access to technological advances that may improve drug development.
Rosetta’s technology solutions offer the potential to accelerate drug discovery by improving biological data analysis, target identification and validation, clinical trials and diagnostics. Buying Rosetta should allow Merck to stay ahead of other pharmaceutical companies in terms of its adoption of new technologies for the advancement of drug discovery.
