Merck.inc is aiming to agree on a purchase of the cancer biotech in the next few weeks, according to WSJ, in a deal that could be worth roughly $40 billion.
A deal would help Merck broaden its lineup of cancer drugs, currently led by Keytruda
- Merck has a market value of around $235 billion.
- Seagen’s stock closed at $175.13
The companies are discussing a price for Seagen above $200 a share and are seeking to seal a deal on or before the announcement of Merck’s quarterly earnings
*Merck tweet on latest from R&D
We’re making significant investments in our R&D facilities and infrastructure to help ensure a brighter future for patients everywhere. Learn more about our efforts: https://t.co/0Od7cNTtem pic.twitter.com/KAO3yPlTJJ
— Merck (@Merck) July 6, 2022
There is still no guarantee the companies will reach agreement on a takeover deal.
Acquiring Seagen would help broaden its lineup of cancer drugs, currently led by the blockbuster immunotherapy Keytruda, the company’s top-selling product with $17.2 billion in sales last year.
Shareholders of both companies have nevertheless reacted positively to the possibility of a tie-up, with both stocks up sharply since the news circulated
Seagen helped pioneer a class of cancer therapy, among Seagen’s products is Adcetris, which had $1.4 billion in sales last year.
Sales have been rising for Padcev, a drug for urothelial cancers of the bladder and certain other organs first approved in 2019. Seagen sells Padcev with Astellas Pharma Inc.
The FDA cleared Merck’s new Covid-19 therapy ‘molnupiravir’ the latest antiviral that adults can take at home to avoid severe disease.
The promise of antibody drug conjugates treating various cancers has drawn the interest of big pharmaceutical companies.