Germany's Merck KGaA said on Thursday it is in late-stage talks to acquire U.S.-based SpringWorks Therapeutics for about $3.5 billion, a deal that could give it access to a recently approved rare disease drug and expand its portfolio of experimental cancer treatments.

Merck KGaA has confirmed that it is in late-stage discussions with SpringWorks, valuing the deal at a price of around $47 per share.

Shares of SpringWorks Therapeutics (NASDAQ:SWTX) reached a session high on Thursday after The Wall Street Journal reported that Germany’s Merck KGaA (OTCPK:MKGAF) is closing in on a roughly $3.5B deal to acquire the cancer and rare disease drugmaker.