Executive Summary / Key Takeaways

• SpringWorks Therapeutics has successfully transitioned into a commercial-stage biopharmaceutical company with the launch of two precision medicines, OGSIVEO for desmoid tumors and GOMEKLI for NF1-PN, driving significant revenue growth.
• The company's differentiated pipeline, including approved therapies and promising candidates like SW-682 and SW-3431, leverages targeted small molecule approaches with demonstrated clinical benefits, such as deep responses and improved quality of life in rare diseases.
• Strong commercial execution for OGSIVEO has established it as the standard of care systemic therapy for adult desmoid tumors, with market data suggesting a larger addressable patient population than initially estimated and high physician intent for frontline use.
• Mirdametinib (GOMEKLI) is positioned as a potentially best-in-class therapy for NF1-PN, addressing a substantial unmet need, particularly in adults, with a differentiated profile supported by robust ReNeu trial data.
• The recently announced definitive agreement for Merck KGaA, Darmstadt, Germany to acquire SpringWorks for $47 per share in cash, valued at approximately $3.9 billion, validates the company's assets and strategy, offering immediate value to shareholders and potential for broader global reach.

A Precision Medicine Story Culminating in Strategic Value

SpringWorks Therapeutics has rapidly evolved from a clinical-stage biotech into a commercial entity with a compelling narrative centered on precision medicine for underserved patient populations. Founded with a focus on developing targeted small molecule therapies for rare diseases and cancer, the company has strategically built a portfolio designed to address genetically defined patient subsets with high unmet needs. This journey, marked by significant R&D investment and strategic partnerships, has recently culminated in a transformative event: a definitive agreement to be acquired by Merck KGaA, Darmstadt, Germany (MKKGY), for $47 per share in cash, representing an equity value of approximately $3.9 billion. This planned acquisition, expected to close in the second half of 2025, underscores the value created by SpringWorks' targeted approach and successful entry into the commercial market.

The company's strategy hinges on identifying and advancing product candidates with strong biological rationales and validated mechanisms of action. This precision approach is foundational to its competitive positioning, allowing it to target niche markets with potentially highly effective therapies. While larger pharmaceutical companies like Novartis (NVS), Pfizer (PFE), and Bristol-Myers Squibb (BMY) operate across broad therapeutic areas with vast resources and established market shares, SpringWorks has carved out a distinct space by focusing on rare and genetically defined conditions where its targeted therapies can offer significant advantages over existing, often suboptimal, treatments.

Technological Edge and Differentiated Assets

At the heart of SpringWorks' value proposition are its differentiated small molecule targeted therapies. The company's lead assets, OGSIVEO (nirogacestat) and GOMEKLI (mirdametinib), exemplify this approach.

OGSIVEO is a novel, oral, selective gamma secretase inhibitor. Its mechanism targets the Notch pathway, which is implicated in the pathogenesis of desmoid tumors. The Phase 3 DeFi trial demonstrated OGSIVEO's significant clinical benefit, showing a 71% reduction in the risk of disease progression compared to placebo (HR 0.29; 95% CI 0.15, 0.55; p < 0.001). The confirmed objective response rate (ORR) was 41% with OGSIVEO versus 8% with placebo. Beyond tumor shrinkage, OGSIVEO also showed early and sustained improvements in patient-reported outcomes, including pain and quality of life. This clinical profile provides a tangible benefit over off-label systemic options, which are often associated with inconsistent efficacy and challenging tolerability, positioning OGSIVEO as the preferred systemic treatment.

GOMEKLI is an oral, small molecule MEK inhibitor targeting the MAPK pathway, which is dysregulated in NF1-PN. Data from the pivotal Phase 2b ReNeu trial highlighted GOMEKLI's potential differentiation. The trial showed robust ORRs of 52% in pediatric patients and 41% in adult patients. Importantly, the study demonstrated "very deep responses," defined as a >=50% reduction in tumor volume, in 52% of pediatric and 62% of adult responders. These deep responses are noted as unprecedented in published studies of other MEK inhibitors for NF1-PN, including Novartis' Koselugo (selumetinib), which holds a significant share in the pediatric NF1-PN market. While direct comparative financial data on manufacturing costs per unit are not detailed, SpringWorks' smaller scale likely results in higher per-unit costs compared to large-cap competitors. However, the potential for superior efficacy and a manageable tolerability profile supporting extended treatment duration provides a strong clinical differentiator in a market with significant unmet need and fragmented treatment approaches. GOMEKLI also offers a convenient dosing regimen with a built-in treatment holiday and a pediatric-friendly dispersible tablet formulation, aiming to enhance patient experience and compliance.

Beyond these approved assets, SpringWorks' pipeline includes SW-682, an oral TEAD inhibitor in Phase 1a for Hippo-mutant solid tumors, and SW-3431, a PP2A activator in preclinical development with an IND filing planned by the end of 2025 for aggressive uterine cancers. These programs represent continued investment in precision oncology, targeting distinct molecular pathways with the goal of developing potentially first-in-class or best-in-class therapies. While specific quantifiable targets for these early programs are not detailed, their strategic intent is to expand SpringWorks' reach into additional rare and genetically defined cancers. The recent decision to wind down the MapKure joint venture reflects a disciplined approach to portfolio management based on clinical data review.

Commercial Momentum and Financial Performance

SpringWorks' transition to a commercial company has been marked by strong initial performance. OGSIVEO, approved in November 2023, generated $21 million in net product revenue in Q1 2024, its first full quarter on the market. This momentum continued, with Q2 2024 revenue reaching $40.2 million and Q3 2024 revenue growing 23% quarter-over-quarter to $49.3 million. In Q1 2025, the company reported $44.1 million in OGSIVEO net product revenue. While Q1 2025 saw a slight sequential dip from Q3 2024, the overall trajectory since launch has been robust.

This performance is driven by strong commercial execution. OGSIVEO has rapidly become the most prescribed systemic therapy for adult desmoid tumors, with high adoption across both Centers of Excellence and community practices. Market research indicates high physician satisfaction and intent to use OGSIVEO as a frontline treatment (90% of surveyed prescribers) and expectations for increased future usage (60% expect to increase usage). The growing use of desmoid tumor-specific ICD-10 codes has provided better market visibility, suggesting the actively managed patient population is larger than the initial 5,500-7,000 estimate, with over 10,000 unique patients identified through August 2024. Furthermore, a shift towards symptom-based treatment initiation, rather than solely radiographic progression, is expanding the pool of patients considered candidates for OGSIVEO earlier in their disease course. The successful introduction of blister packaging in May 2024 is expected to enhance patient convenience and adherence, supporting treatment persistence.

GOMEKLI, approved in February 2025, added a second revenue stream, contributing $4.9 million in net product revenue in Q1 2025. The company accrued a $6 million milestone payment to Pfizer upon the first commercial sale, expected to be paid in Q3 2025.

The U.S. commercial team, comprising 35 territory business managers and regional directors, is focused on launching GOMEKLI as the standard of care for NF1-PN patients.

Financially, SpringWorks reported total revenue of $49.087 million in Q1 2025, a significant increase from $21.006 million in Q1 2024, reflecting the launch of both products. Operating expenses increased to $