Pharmaceutical giant Merck (NYSE:MRK) said today that it has agreed to buy SmartCells, a privately-held firm that develops insulin for the treatment of diabetes, in a deal that may be worth as much as $500 million.
Under the terms of the agreement, SmartCells shareholders will receive an upfront cash payment and additional payments if clinical development and regulatory milestones are achieved. They are also eligible to receive additional payments based on future sales.
SmartCells, based in Beverly, Massachusetts, counts investment groups Boston Harbor Angels, Angel Healthcare Investors, Beacon Angels and Cherrystone Angel Group as its shareholders. The company's board of directors has unanimously approved the deal.
Merck's share price has edged higher by 0.3% to trade at $35.18 as of 12:20 am EST. Over the past year, its share price has declined 4.4%.