Prometheus Biosciences Acquisition, Valuation, Funding & Investors

Prometheus Biosciences was acquired by Merck for $11B in April 2023.

Prometheus Biosciences acquisition price

$11B

Acquired by Merck · Apr 2023

Cumulative funding Prometheus Biosciences raised

$192M

across 4 funding rounds

Key investors in Prometheus Biosciences

  • Perceptive Advisors
  • RTW Investments
  • Cowen Healthcare Investments
  • Eventide
  • Cedars Sinai
  • Irving Investors
  • Nestlé
  • Point72

Prometheus Biosciences Overview

About Prometheus Biosciences

Prometheus Biosciences is a biotechnology company advancing diagnostics and therapeutics for inflammatory bowel disease. San Diego-headquartered and founded in 1995, it developed the PR4 test for ulcerative colitis risk stratification and markets drugs like Entocort EC for Crohn's disease remission. Acquired by Merck in 2023, it offers pharmacogenetic assays for thiopurine monitoring.


Founded

1995

HQ

United StatesSan Diego, CA

Status

Acquired

Customer focus

B2B

Revenue model

Product sales

Valuation

$11B (acquired Apr 2023)

Prometheus Biosciences Acquisition

Prometheus Biosciences was acquired by Merck for $11B on 16 April 2023.

Before the acquisition Prometheus Biosciences had raised $192M across 4 funding rounds.

Merck acquired Prometheus Biosciences, a clinical-stage biotech focused on precision medicines for immune-mediated diseases, particularly inflammatory bowel diseases like ulcerative colitis and Crohn’s disease. The deal centered on Prometheus’ lead asset PRA023 (rebranded MK-7240), an investigational anti-TL1A monoclonal antibody targeting inflammation and fibrosis, with phase 2 data showing strong remission rates. Prometheus also brought four other clinical and preclinical candidates in immunology. Under the all-cash agreement announced April 16, 2023, and closed later that year, Merck purchased all outstanding shares for $200 each, totaling approximately $10.8 billion equity value—a 75% premium to the prior closing price. The acquisition accelerates Merck’s immunology expansion to offset future Keytruda patent loss, building on prior deals like Pandion Therapeutics. It was accounted as an asset acquisition with a $10.3 billion charge. Strategically, Merck gains a potential best-in-class TL1A inhibitor amid competition from rivals like Roivant, positioning PRA023 for late-stage trials and multibillion-dollar peak sales projections in IBD by 2028, with further expansion into systemic sclerosis and other indications.

Prometheus Biosciences acquisition details
AcquirerDateTypePrice
16 Apr 2023Strategic M&A$11B

Prometheus Biosciences Funding History

Prometheus Biosciences has raised a total of $192M across 4 funding rounds.

Prometheus Biosciences' first fundraising round was a $4M Series A in October 2017. The most recent completed round was a $130M undisclosed-stage round in November 2020.

Prometheus Biosciences funding rounds

Prometheus Biosciences funding rounds
DateStageInvestorsRaisedDeal Summary
Nov 2020Undisclosed stageEventide (lead); RTW Investments (lead); Nestlé; Cowen Healthcare Investments; Cedars Sinai; Point72; AGI Partners; Cormorant Capital; Perceptive Advisors; Irving Investors$130MPrometheus Biosciences, a San Diego-based biotechnology company (formerly Precision IBD), develops precision medicine approaches including therapies and companion diagnostics for inflammatory bowel disease (IBD) and other immune-mediated conditions, leveraging its Prometheus 360 platform to identify drug targets like TL1A. In November 2020, it closed a $130 million equity financing round co-led by Eventide Asset Management and RTW Investments, with participation from Perceptive Advisors, Cormorant Capital, Cowen Healthcare Investments, Point72 Asset Management, Irving Investors, Ascend Global Investment Fund, Cedars-Sinai Medical Center, and Nestlé SA. The funds were intended to advance its lead antibody program targeting TL1A-associated IBD into clinical development and expand its pipeline of precision medicine programs. This round brought total funding to nearly $520 million, providing runway through 2023 for its preclinical and IND-ready assets. The company had rebranded after acquiring Prometheus Laboratories from Nestlé Health Sciences in summer 2019 and previously partnered with Takeda in 2019 for bioinformatics tools to identify up to three IBD therapies and diagnostics, with potential milestones up to $420 million. At the time, Prometheus had grown to 130 employees and was positioned as the largest private financing in the GI space since 2014. Post-round, Prometheus went public in March 2021 and raised $500 million in December 2022 at $110 per share to advance PRA023 (its TL1A antibody) into Phase 3. In June 2023, Merck acquired it for $200 per share, valuing the equity at approximately $10.8 billion, highlighting the success of its immunology pipeline.
Jun 2019Undisclosed stage-$48MPrometheus Biosciences, previously known as Precision IBD, is a biotech company developing therapies and diagnostics for inflammatory bowel diseases (IBD). In June 2019, it acquired Prometheus Laboratories from Nestle Health Sciences. The company focuses on precision medicine, including antibody programs targeting TL1A-associated IBD and bioinformatics tools for drug targets. Around mid-2019, Prometheus raised significant equity financing, with a $130 million round led by Eventide and RTW, participated by Perceptive Advisors, Cormorant Capital, Cowen Healthcare Investments, and Point72; this was noted as the largest private GI financing since 2014. Total funding reached nearly $520 million by the time of the article. The company had a deal with Takeda in 2019 for bioinformatics to identify up to three IBD therapies and companion diagnostics, with upfront payment and up to $420 million in milestones. It had four promising IBD drugs in clinic or IND-ready, providing runway through 2023, with 130 staff and IPO potential. Later developments include a Series D at $657.54M valuation, IPO, and 2023 acquisition by Merck for $10.8bn.
Nov 2018Series B-$10MPrometheus Biosciences, originally founded as Precision IBD in 2016, develops precision medicines and diagnostics for inflammatory bowel disease (IBD) and autoimmune diseases using its Prometheus 360 platform. The company closed a $10.1 million funding round in November 2018, prior to rebranding and a $130 million equity financing in November 2020 led by Eventide Asset Management and RTW Investments. Investors in the 2020 round included Perceptive Advisors, Cormorant Capital, Cowen Healthcare Investments, Point72 Asset Management, Irving Investors, Ascend Global Investment Fund, Cedars-Sinai Medical Center, and Nestlé SA. In June 2019, Prometheus acquired Prometheus Laboratories from Nestlé, supporting its expansion in gastroenterology. The company had raised about $62 million cumulatively before the 2020 round, with prior financings of $3.7 million in 2017.
Oct 2017Series A-$4M-

Who has invested in Prometheus Biosciences?

10 investors have backed Prometheus Biosciences across its funding rounds, including Perceptive Advisors, RTW Investments, Cowen Healthcare Investments, Eventide, Cedars Sinai and Irving Investors.

Lead investors include Eventide and RTW Investments.


Prometheus Biosciences Investors

Investors in Prometheus Biosciences by funding rounds participated
InvestorHQRoundsRoleFirst check
RTW InvestmentsUnited StatesNew York City, NY1LeadNov 2020
EventideUnited StatesBoston, MA1LeadNov 2020
NestléSwitzerlandVevey1ParticipantNov 2020
Cowen Healthcare InvestmentsUnited StatesNew York City, NY1ParticipantNov 2020
Cedars SinaiUnited StatesLos Angeles, CA1ParticipantNov 2020
Point72United StatesStamford, CT1ParticipantNov 2020
AGI PartnersUnited StatesNew York City, NY1ParticipantNov 2020
Cormorant CapitalUnited StatesNew York City, NY1ParticipantNov 2020

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Prometheus Biosciences Competitors

Prometheus Biosciences competitors include listed companies like Twist Bioscience, 10x Genomics and Guardant Health, and private ones like Heyuan Biotechnology, ArsenalBio and Institut Merieux.

Public and private companies comparable to Prometheus Biosciences
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
Heyuan BiotechnologyChinaShanghaiPrivate--$3B-
ArsenalBioUnited StatesUnited StatesPrivate--$1.9B-
Twist BioscienceUnited StatesUnited StatesPublicly listed$377M($63M)$10B22.6x
10x GenomicsUnited StatesUnited StatesPublicly listed$643M($16M)$10B15.2x
Institut MerieuxFranceLyonPrivate--$8.5B-
Guardant HealthUnited StatesUnited StatesPublicly listed$982M($408M)$25B20.2x

Prometheus Biosciences Public Comps

Prometheus Biosciences is no longer listed, but its public comps include Akeso, Haisco Pharmaceutical, Zhangzhou Pientzehuang, Laurus Labs, Axsome Therapeutics, Twist Bioscience, Elanco, Apogee Therapeutics, Dr Reddy's Laboratories and Aurobindo Pharma.

Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
Akeso$456M($154M)22.0x16.0x(65.2x)(521.9x)
Haisco Pharmaceutical$654M$83M16.3x12.2x127.9x51.6x
Zhangzhou Pientzehuang$1.3B$399M7.8x8.1x26.4x28.4x
Laurus Labs$701M$189M16.1x14.3x59.6x51.1x
Axsome Therapeutics$638M($168M)17.4x12.8x(66.2x)(78.5x)
Twist Bioscience$377M($63M)27.2x22.6x(161.4x)(316.8x)
Elanco$4.7B$676M3.1x2.9x21.8x14.9x
Apogee Therapeutics-($284M)--(32.6x)(32.6x)

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Common questions about Prometheus Biosciences

When was Prometheus Biosciences founded?Prometheus Biosciences was founded in 1995.
Where is Prometheus Biosciences headquartered?Prometheus Biosciences is headquartered in San Diego, CA, United States.
Is Prometheus Biosciences publicly listed?No, Prometheus Biosciences was acquired by Merck in April 2023.
Who acquired Prometheus Biosciences?Prometheus Biosciences was acquired by Merck in April 2023.
How much was Prometheus Biosciences acquired for?Prometheus Biosciences was acquired for $11B in April 2023.
How much funding has Prometheus Biosciences raised?Prometheus Biosciences has raised $192M across 4 funding rounds.
What was Prometheus Biosciences' last funding round?Prometheus Biosciences' last funding round was a $130M undisclosed-stage round in November 2020, led by Eventide and RTW Investments.
Who are Prometheus Biosciences' investors?Prometheus Biosciences' investors include RTW Investments, Eventide, Nestlé, Cowen Healthcare Investments, Cedars Sinai, Point72, AGI Partners, Cormorant Capital, Perceptive Advisors and Irving Investors.
Which companies are comparable to Prometheus Biosciences?Companies comparable to Prometheus Biosciences include Heyuan Biotechnology, ArsenalBio, Twist Bioscience, 10x Genomics, Institut Merieux and Guardant Health.

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