Business Strategy Merck to Acquire Leading Firm Specializing in Adult Stem Cell-Derived Organoids

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Merck has entered into a definitive agreement to acquire Hub Organoids Holding, a Netherlands-based firm which specializes in adult stem cell-derived organoids. The transaction is expected to close at the end of December 2024.

Darmstadt/Germany – Merck has signed a definitive agreement with the intention to acquire Hub Organoids Holding. Organoids are cell culture models that functionally resemble an organ. They have the potential to speed up drug development, improve understanding of disease treatment in diverse populations, and reduce the industry’s reliance on animal testing. Hub is a pioneer in the field of organoids. The company is based in Utrecht, Netherlands and employs around 70 people. Terms of the deal were not disclosed. The transaction is expected to close at the end of December 2024.

“Hub’s leadership in organoids and services strengthen our already robust portfolio, underscoring our focus on the strategic innovation area of next-generation biology,” said Jean-Charles Wirth, Head of Science & Lab Solutions for the Life Science business of Merck. “For researchers working on novel approaches to treat today’s most challenging diseases, organoids offer critical insights into biologic systems. We look forward to making it faster and easier for scientists to get from samples to solutions.”

Hub possesses the foundational patent portfolio on organoids and has a service offering ranging from new model generation to assay development and high-throughput screening. This adds to and enhances Merck’s portfolio of cell culture reagents, tools and benchtop instruments for academia, biotech, and pharma customers. Hub’s technology enables drug developers to identify and validate potential clinical candidates in a patient-relevant in vitro system, closing the gap between the lab and clinical trials.

“Our proprietary technology stands at the forefront of solutions that are driving a paradigm shift for drug discovery and development,” said Robert Vries, CEO of Hub Organoids. “Merck’s resources will act as a multiplier for our business. This allows us to significantly expand our reach and increase our impact with customers and, ultimately, patients.”

The promise of organoids also contributes to Merck’s sustainability, diversity, and inclusion ambitions. The use of organoids may allow researchers to limit their reliance on animal testing by reducing stages in the R&D process, positively contributing to more environmentally sustainable alternatives. Organoids also create opportunities for genetically diverse populations to be reflected in research. They allow scientists to better understand drug interactions in patient populations that are underrepresented in clinical trials.

The biology business of Merck’s Science and Lab Solutions business is pioneering innovations in 3D cell culture, a highly attractive market expected to show double digit annual growth over the next decade. The company’s current comprehensive and highly published portfolio of cell biology technologies includes tumor spheroids, stem cell organoids, and tissue engineering via 3D bioprinting. Its high-quality cell culture fundamentals and proven downstream analysis reagents offer a complete portfolio for drug development scientists. They include filtration, media, serum, culture plates, cell lines, microbial detection, cytokines and growth factors, analysis tools, transfection reagents, dyes and stains, and antibodies and immunodetection.

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