Seagen (NASDAQ:SGEN) stock is up about 11% and is one of the top-trending tickers on reports that the drug maker could be acquired by Pfizer (NYSE:PFE) for over $30 billion. The negotiations are just starting and may not result in a deal.
Seagen has developed a cancer treatment called Adcetris, which is used to combat peripheral T-cell lymphoma and some cases of adult classical Hodgkin lymphoma.
Pfizer’s Potential Offer and SGEN Stock
In the wake of the news about a potential deal, the market capitalization of SGEN reached roughly $30 billion. According to Barron’s, Pfizer will probably have to pay more than that to acquire the company. By acquiring SGEN, Pfizer would improve its pipeline of cancer treatments, the publication added.
If Pfizer and Seagen make a deal, the transaction must be approved by America’s antitrust regulators before it can close.
More About Seagen’s Treatments
Seagen’s drugs use “toxic agents” to combat tumors, The Wall Street Journal explains. Similar treatments have been approved to treat several types of cancer and have shown potential as a remedy for one form of breast cancer.
Last quarter, Adcetris’ sales jumped 35% compared to $238 million a year earlier. For all of 2023, Seagen expects its top line to come in at $2.14 billion to $2.24 billion.
Last month, the FDA approved Seagen’s Tukysa drug as a treatment for certain cases of colorectal cancer.
On Feb. 15, Seagen reported that it was conducting ten studies to expand the use of its drugs that regulators have already approved.
“These new labels could unlock meaningful growth across our approved brands and broaden their reach to significantly more patients in need,” said the company’s CEO, David Epstein.
Moreover, addressing the progress of another one of Seagen’s drugs, PADCEV, Epstein reported that the FDA has “granted priority review for an application seeking accelerated approval for the combination of PADCEV and [Merck’s] KEYTRUDA in [certain cases of] first-line metastatic bladder cancer.” The CEO added that Seagen was testing PADCEV as a treatment for multiple other solid tumors and noted that he believes that PADCEV can become “a blockbuster.”
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
