Merck KGaA Expands Life Sciences Business with $11.3bn Bio-Techne Acquisition

Merck KGaA has agreed to acquire US-based life sciences company Bio-Techne in an $11.3 billion deal, significantly expanding its presence across the life sciences value chain and marking one of the largest pharmaceutical acquisitions of 2026.

The acquisition strengthens Merck’s capabilities beyond traditional pharmaceuticals, adding Bio-Techne’s portfolio of research reagents, analytical instruments, clinical diagnostics and biologics manufacturing tools. It also represents the company's largest acquisition since its $17 billion purchase of Sigma-Aldrich in 2015.

Strengthening the Life Sciences Value Chain

Under the agreement, Merck will pay $73 per share for Bio-Techne, representing a 36% premium to the company's one-month volume-weighted average share price and a 25% premium to its most recent market close.

Bio-Techne generated more than $1.2 billion in net sales during fiscal 2025 and operates across 34 global locations with approximately 3,100 employees.

Its portfolio includes:

• Cytokines and growth factors

• Antibodies and proteins

• Small molecules for drug discovery

• Immunoassay kits

• Analytical instruments

• Clinical diagnostic products
  

These technologies are widely used throughout drug discovery, translational research, clinical development and commercial manufacturing.

Merck said the acquisition will enable it to better support customers across the full development lifecycle, from early laboratory research through to large-scale biopharmaceutical production.

A Strategic Shift Under New Leadership

The transaction is the first major acquisition led by CEO Kai Beckmann, who assumed leadership in September 2025.

Earlier this year, Beckmann described Merck's pharmaceutical pipeline as "rather slim" and signalled that acquisitions would play an increasingly important role in strengthening the company's long-term growth strategy.

The Bio-Techne acquisition aligns closely with that vision.

Rather than focusing solely on adding late-stage drug assets, Merck is investing in the infrastructure and technologies that underpin modern drug development, expanding its exposure to the broader life sciences ecosystem.

The strategy also continues a long-term diversification programme that began with the acquisition of Sigma-Aldrich, reducing reliance on revenue generated exclusively from marketed medicines.

Growing Momentum in Healthcare M&A

The acquisition comes amid one of the strongest periods for healthcare dealmaking in recent years.

US pharmaceutical and life sciences deal value exceeded $65 billion during the first quarter of 2026, while industry confidence continues to improve. According to GlobalData's State of the Biopharmaceutical Industry 2026 (Mid-Year Update), more than half of industry respondents remain optimistic about sector growth over the coming year.

The Bio-Techne purchase also joins a growing list of blockbuster acquisitions announced by non-US pharmaceutical companies during 2026, including:

• GSK's $10.6 billion acquisition of Nuvalent

• Sun Pharma's $11.75 billion acquisition of Organon
  

Merck's move suggests European pharmaceutical companies remain willing to pursue large strategic acquisitions despite continued economic uncertainty.

Why the Deal Matters

The acquisition reflects several broader industry trends:

• Life sciences tools businesses continue to attract strong strategic interest from pharmaceutical companies.

• Diversification beyond traditional drug portfolios is becoming an increasingly important growth strategy.

• Companies are investing across the entire drug development ecosystem rather than focusing solely on therapeutic assets.

• Large-scale M&A activity remains robust despite challenging capital markets.
  

For Merck, Bio-Techne provides immediate scale in research tools and diagnostics while strengthening relationships with biotechnology and pharmaceutical customers across every stage of drug development.

Summary

Merck KGaA has agreed to acquire Bio-Techne for $11.3 billion, marking its largest acquisition in a decade and significantly expanding its life sciences business.

The transaction strengthens Merck's position across research, diagnostics and biomanufacturing while continuing its long-term strategy of diversifying beyond traditional pharmaceuticals.

As healthcare M&A activity gathers pace in 2026, the acquisition highlights the growing strategic value of companies supplying the technologies that power modern drug discovery and development.

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