Biotech company Seagen, which focuses on cancer treatments, could soon have a new owner even after the failed sale to pharmaceutical giant Merck. According to the Wall Street Journal, Pfizer, one of the world’s leading pharma companies, engaged in early talks about the Seagen acquisition.
Merck seemed to be close to buying Seagen last year for a reported price of $200 per share, with the total value of the deal being estimated to be $40 billion. However, the talks between the two sides cooled off for an unspecified reason, allowing Pfizer to get involved.
Wall Street Journal’s report points out that the deal between Pfizer and Seagen is not guaranteed to go through. Two sides need to overcome several obstacles, including the antitrust review, but there is initial optimism that the deal could be pushed over the finish line at some point. Seagen is valued at around $30 billion at the moment, which is reportedly the price Pfizer would pay if the agreement is made.
Pfizer is looking to expand its cancer treatment portfolio, given the fact that several of its patents expire in 2030. This could result in the company losing up to $17 billion in sales.
After the news about Pfizer’s interest in Seagen became public, the company’s stock took a 4% dip on Monday compared to last week’s closing price of $41.70 per share. On the other hand, Seagen’s stock climbed from $161.37 to 182.54 at one point before settling at $176.55.