Merck & Co., Inc (NYSE: MRK) has announced that it is in discussion to purchase Seagen Inc. and may reach an agreement as earlier as this month, according to people familiar with the matter.
Merck to offer $200 per share to buy Seagen
One of the sources stated that a sale price of around $200 per share is being considered. According to figures provided by Bloomberg, it would equate to a valuation of more than $37 billion and offer an approximately 14 percent premium to Seagen’s most recent closing price.
According to the individual who wanted to remain anonymous since the conversation involved sensitive material, Merck has been reading Seagen’s books lately and plans to disclose a deal that will boost its own profits. On July 28, Merck is expected to release second-quarter financial results.
Even if the talks are far along, they could still fall through, according to the sources. While a spokesman for Merck did not immediately reply to a request for comment, one for Seagen refused to do so. The Wall Street Journal previously reported, citing unnamed sources, that Merck was in serious discussions over a potential offer of more than $200 per share for Seagen.
According to their website, Seagen, situated in Bothell, Washington, creates cancer treatments employing antibody conjugate and sugar-engineered antibody techs. The company’s shares have grown 13% this year, bringing its market worth to roughly $32 billion.
Merck is expanding beyond Keytruda
Investor pressure has forced Merck to expand outside its most lucrative drug, Keytruda, which will be challenged by less expensive drugs beginning in 2028. It is one of many businesses, including Sanofi, Pfizer Inc., Amgen Inc., Gilead Sciences Inc., and Roche Holding AG, that have been looking for upcoming blockbuster medicines through acquisitions.
For almost $11 billion, Merck acquired Acceleron Pharma Inc. last year. A specific kind of protein that is essential for controlling cell development, differentiation, and repair is the focus of Acceleron’s pipeline. Sotatercept, a medication for pulmonary arterial hypertension, is the company’s top contender and is now in the late stages of research.