Merck to Buy Imago for $1.35 Billion to Gain Marrow Drugs (2)

Merck & Co. agreed to purchase Imago BioSciences Inc. to gain therapies for bone marrow conditions that lead to overproduction of blood cells, including one drug in mid-stage trials.

Merck will pay $36 a share in cash for South San Francisco-based Imago for a total value of about $1.35 billion. The transaction is expected to close in the first quarter of next year, the companies said Monday in a statement. Imago’s shares closed at $17.40 Friday and more than doubled to $35.75 after Monday’s New York market opening. Merck shares were little changed.

Imago is developing therapies for myeloproliferative ...