According to people familiar with the matter, US pharmaceutical giant Merck is entering into in-depth negotiations to acquire Seagen, a biotechnology company focusing on cancer treatment, The target will be finalized in the next few weeks. The deal could be worth about $40 billion or more.
People familiar with the matter said Merck is discussing acquiring Seagen for more than $200 per share and is seeking to complete a deal on or before Merck reports quarterly earnings on July 28. Merck, which is headquartered in New Jersey, has a market value of $235 billion. The acquisition of Seagen will help it expand its cancer drug business. The latter's stock price closed at $175 on Wednesday.
Any proposed deal is expected to draw close attention from antitrust officials. Analysts at the Cowen Group recently predicted that " there is a strong likelihood that the U.S. Department of Justice or the Federal Trade Commission will file a lawsuit.".
In fact, it was reported in June that Merck was considering acquiring Seagen. The negotiations have been going on for some time, but the transaction is not imminent, and other unnamed suitors are also paying attention to Seagen.
Merck and Seagen have already established cooperation earlier. In September 2020, Merck introduced ladiratuzumab vedotin, an antibody conjugate drug (ADC) targeting LIV-1, to Seagen. The total transaction amount was up to US$4.5 billion, including a down payment of US$600 million, an equity investment of US$1 billion, and mileage of up to US$2.6 billion. gold.
At the same time, Merck acquired the commercialization rights of tucatinib, a tyrosine kinase inhibitor, in Asia, the Middle East, and Latin America, and other regions (outside the United States, Canada and Europe) for US$190 million.
Merck Company Profile: Merck & Co. is the world's leading pharmaceutical company with innovative products for human and veterinary medicine. It provides health solutions through its prescription drugs, vaccines, biotherapeutics, animal health and consumer care products. It operates through the following segments: Pharmaceuticals, Animal Health, Healthcare Services, and Alliances. The Pharmaceuticals business includes human health pharmaceuticals and vaccine products. The Animal Health segment discovers, develops, manufactures and markets animal health products, such as pharmaceuticals and vaccine products, to prevent, treat and control disease in livestock and companion animals and sells them to veterinarians, distributors and animal producers. The Healthcare Services segment provides services and solutions focused on engagement, health analytics and clinical services to enhance the value of care provided to patients. The alliance segment includes results from the company's relationship with AstraZeneca LP for sales of Nexium and Prilosec. The company was founded in 1891 and is headquartered in Kenilworth, New Jersey.
SeaGen Company Profile: SeaGen Company is a biotechnology company dedicated to the development and commercialization of antibody therapeutics for the treatment of cancer. Its products include Adcetris and Padcev. The company is also advancing a pipeline of new therapies to treat solid tumors and blood-related cancers. The company was founded on July 15, 1997 by Clay B. Siegel and H. Perry Fair and is headquartered in Bothell, Washington.
