synopsis

After the closing bell, Merck said the two parties were discussing a deal at around $47 per share.

Shares of SpringWorks Therapeutics Inc. ended over 9% higher on Thursday following a report that the company is inching closer to getting acquired by an established giant, triggering a jump in discussions among retail traders.

During regular trading hours on Thursday, The Wall Street Journal reported that Merck KGaA is nearing a $3.5 billion deal to acquire SpringWorks, which specializes in rare diseases and cancer.

The report, citing people familiar with the matter, noted that the German giant had confirmed in February that it was in advanced talks for the buyout, and the two parties have now agreed on a price close to $47 per share.

After the closing bell, Merck confirmed the report, saying the two parties were discussing a deal at around $47 per share. However, it added that they had neither made any final decision nor entered into a legally binding agreement.

On Stocktwits, sentiment for SpringWorks jumped into the 'extremely bullish' zone, accompanied by a 657% spike in message volume.

SWTX sentiment and message volume as of April 24. | source: Stocktwits

Several watchers appeared dissatisfied with the offer, indicating some alignment with the after-hours dip on Thursday.

"$47 is a joke, surely?" wrote one user, adding that Pfizer should throw its hat into the ring of prospective buyers.

However, others expressed some relief.

"What I get, I get. Won't be super happy or anything, but I'll take the W and move on," said one watcher.

SpringWorks has garnered interest from suitors thanks to its lead asset, Gomekli, which treats a rare genetic disorder that causes tumor growth in nerve tissue.

The company's first FDA-approved drug, Ogsiveo, is already available in the U.S. for adult desmoid tumor patients requiring systemic treatment. It raked in $61.5 million in the fourth quarter of 2024.

SpringWorks' stock has gained over 23% this year.

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