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.

Germany’s Merck KGaA is finally nearing a roughly $3.5 billion deal for SpringWorks Therapeutics, a U.S. biopharmaceutical company that specializes in rare diseases and cancer, according to people familiar with the matter.