Merck to take $10.3 billion R&D charge for Prometheus deal this year

(Reuters) – Merck & Co expects a research-and-development charge of about $10.3 billion, or $4 per share, this year as the drugmaker accounts its deal for Prometheus Biosciences Inc as an asset acquisition, CFO Caroline Litchfield said.

The deal is expected to hit Merck’s profit by 25 cents per share in the first 12 months, Litchfield said in an investor conference call on Monday.

The deal is expected to close in the third quarter.

Merck on Sunday agreed to buy Prometheus for about $10.8 billion to build up its presence in immunology. Net of Prometheus’ cash balance, the price paid comes to $10.3 billion.

(Reporting by Raghav Mahobe and Leroy Leo in Bengaluru; Editing by Devika Syammnath)