According to sources familiar with the matter, Merck & Co. Inc (NYSE: MRK) is moving forward with a possible acquisition of Seagen Inc.. This would be one of the biggest acquisitions of the year.
Merck is in discussions to acquire Seagen to expand the cancer medication lineup
Last week, The Wall Street Journal reported that Merck was negotiating to acquire Seagen, which could expand the pharmaceutical company’s lineup of cancer medications, but no deal was near to being reached. However, according to some of the persons on Thursday, the negotiations have progressed, and a meeting between the two corporations is planned for this week.
If Merck already has made a formal bid for the Washington-based company, that information could not be ascertained. People who know the situation claim that Seagen had other suitors interested, but none have come forward.
Considering that Seagen’s market worth is around $30 billion, it could be enormous if there had been a deal. But, instead, since the Journal report, the shares have increased significantly.
There is no assurance that the firms will come to an agreement or that, when they do, authorities will approve it. According to the Journal, the possibility of increased regulatory scrutiny was one of the issues giving Merck pause.
The addition of Seagen would strengthen its portfolio of anti-cancer medications, including the top-selling therapy Keytruda, which generated $17.2 billion in revenue for Merck last year.
Seagen created a cancer treatment targeting tumors
Seagen contributed to the development of a type of cancer treatment that uses poisons to target tumors like a targeted missile. The medicines, known as monoclonal antibody conjugates, can optimize the treatment’s advantages while limiting negative effects by not straying from their intended target. Adcetris, one of Seagen’s products, had sales of $1.4 billion the previous year.
There are already connections between the two businesses, including a partnership to create and market a treatment for cancer. According to the terms of the deal, Merck and Seagen intend to evaluate the investigational therapy in combination with Keytruda.
