Skip to content
Subscriber Only

Acceleron Investor Avoro Says Merck Deal Undervalues Biotech

Merck & Co. headquarters in Kenilworth, New Jersey.
Merck & Co. headquarters in Kenilworth, New Jersey.Photographer: Christopher Occhicone/Bloomberg
Updated on

Merck & Co.’s agreement to buy Acceleron Pharma Inc. for about $11.5 billion “drastically undervalues” the biotechnology firm, one of its largest investors contends.

Avoro Capital, which invests in life sciences and biotech companies and said it holds about 7% of Acceleron’s stock, says the company’s top drug candidate, sotatercept, commands a better deal.