Seagen (SGEN) Stock: Why It Increased 3.06%

By Amit Chowdhry ● Jun 25, 2022
  • The stock price of Seagen Inc (NASDAQ: SGEN) increased by 3.06% in the most recent trading session. This is why.

The stock price of Seagen Inc (NASDAQ: SGEN) increased by 3.06% in the most recent trading session. Investors responded positively to Merck reportedly moving forward with pursuing a takeover of Seagen.

According to The Wall Street Journal, this would be one of the largest takeovers of the year and the talks picked up the pace. It is unclear whether Merck submitted a formal offer for Seagen yet. However, there are several other suitors considering a purchase of Seagen as well.

Seagen has a market value of over $30 billion so a deal would be very significant if it goes through. And if the two companies agreed upon the deal, then it would have to get through a number of regulatory approvals. Through the acquisition of Seagen, it would enhance Merck’s lineup of cancer drugs.

Seagen is known for pioneering a class of cancer therapy that attacks tumors with toxins. The therapies are known as antibody drug conjugates, which would be able to maximize the treatment’s benefits and minimize side effects by not going off target. Seagen’s Adcetris alone generated $1.4 billion in sales last year.

Merck and Seagen are already partners as they have collaborated on the development of breast cancer treatments. And as part of the agreement, Seagen and Merck are planning to test out experimental treatments in combination with Keytruda. Merck is going to pay $600 million upfront to Seagen and buy 5 million shares of the company for $1 billion. 

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.