By Colin Kellaher

Shares of Prometheus Biosciences Inc. jumped 70% in premarket trading Monday after the biopharmaceutical company agreed to be acquired by drug giant Merck & Co. for about $10.8 billion.

Merck said it would pay $200 a share in cash for Prometheus, a premium of more than 75% to Friday's closing price of $114.01 for the San Diego company.

Merck, based in Kenilworth, N.J., expects to complete the acquisition in the third quarter.

Prometheus shares were recently up 70% to $194 in premarket trading.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

April 17, 2023 06:11 ET (10:11 GMT)

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