On Monday, Merck & Co Inc said it would acquire Imago BioSciences Inc, the cancer drug developer, for a total equity value of USD 1.35 billion to extend its portfolio of blood disorder treatments.

The drugmaker’s offer of USD 36 per share in cash for Imago represents a nearly 107 per cent premium to the company’s last close. The latter’s shares more than doubled in premarket trading to USD 35.65.

It is to be noted that the drugmaker is willing to expand its drug portfolio as it’s cancer immunotherapy Keytruda is expected to lose key patents in 2028. Last year, the company bought Acceleron Pharma (NASDAQ:XLRN) for about USD 11.5 billion to gain access to latter’s experimental therapy for treating a type of high BP.

Imago develops drugs for the treatment of bone marrow-related disorders. It is currently testing its lead drug bomedemstat for treating chronic cancer known as myeloproliferative neoplasms.