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• Deal would help Merck broaden its lineup of cancer drugs, currently led by Keytruda
Drugmaker Merck & Co (NYSE: MRK) is in advanced talks to acquire cancer-focused biotech firm Seagen Inc (NASDAQ: SGEN), the Wall Street Journal reported on Thursday, citing people familiar with the matter.
The report said Merck is discussing a price above $200 a share for Seagen, which could value the deal at roughly $40 billion.
The Washington-based cancer biotech company has a market capitalization of $32.24 billion at Wednesday’s closing share price.
Seagen’s shares rose more than 4% to $183 in early morning trading, while the New Jersey-based Merck fell almost 0.5% on Thursday.
Merck’s cancer drug Keytruda, which is set to lose exclusivity in 2028, generated sales of $17.2 billion in 2021 and accounted for 35.2% of Merck’s total revenue.
Seagen has several clinical-stage cancer drugs and four approved drugs, including breast cancer therapy Tukysa, all of which brought in more than $1 billion in revenue last year.
The companies are seeking to sign the deal on or before July 28, when Merck will publish its second-quarter earnings, WSJ reported.
Picture Credit: WSJ
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