Home Business Merck in advanced talks to buy Seagen in nearly $40-billion deal – WSJ

Merck in advanced talks to buy Seagen in nearly $40-billion deal – WSJ

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Drugmaker Merck & Co is in advanced talks to buy cancer-focused biotech company Seagen Inc in a deal that could be worth roughly $40 billion or more, the Wall Street Journal reported on Wednesday.

The companies are discussing a price above $200 a share for Seagen, the report said, citing people familiar with the matter. (https://on.wsj.com/3uu3tMa)

At Wednesday’s closing share price of $175, Seagen has a market capitalization of $32.24 billion, according to Refinitiv data.

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Seagen declined to comment on the report, while Merck did not immediately respond to Reuters request for comment outside business hours.

Merck and Seagen are seeking to seal a deal on or before the announcement of Merck’s second-quarter earnings set for July 28, the WSJ report said. Talks have been underway for a while on the deal, which the Journal first reported last month.

BMO Capital analysts said in June there is “little question” of Seagen’s fit in Merck’s long-term growth, but raised concerns on heightened regulatory scrutiny.

There is a clear need for Merck to replace revenues after the expected loss of exclusivity of its blockbuster cancer drug Keytruda in late 2028, the analysts had said. (Reporting by Shivam Patel in Bengaluru; Editing by Arun Koyyur)

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