Seagen (SGEN) stock roared 17% higher on Merck’s (MRK) buyout plan

June 17, 2022 11:37 AM PDT | By Versha Jain
Follow us on Google News:
  • Washington-based Seagen Inc. (NASDAQ: SGEN) stock rose 16.76% on Friday.
  • Merck & Company, Inc. (MRK) is considering buying the biotech firm. 
  • However, their talks are not yet conclusive.

Washington-based Seagen Inc. (NASDAQ: SGEN) stock rose 16.76% to US$171.385 at 12:14 pm ET on Friday after WSJ reported that Merck & Company, Inc. (MRK) is considering buying the cancer-focused biotechnology firm

According to the report, a possible deal could be still far away, although talks are going on; and they may also settle for a marketing collaboration. Seagen currently has a market capitalization of US$31.50 billion, while Merck’s market value is around US$212 billion.

After the news, the MRK stock plunged 1.50% to US$83.62 at 12:32 pm ET. If the deal gets finalized, Merck will boast an impressive lineup of cancer drugs.

Also Read: CELU to CMPI: Explore top 5 biotech stocks with over 100% YTD return

Both the companies have already been collaborating on breast-cancer treatment. They plan to test Merck’s top-selling product Keytruda in combination with another drug in an experiment.

Merck has reportedly offered Seagen US$600 million up-front out of its total five million shares worth US$1 billion for the takeover.

The healthcare sector saw fewer deals this year amid a topsy-turvy market condition. The industry typically sees a lot of deal-making each year. The fewer deals in 2022 compared to last year were due to the high valuations and increased risks of antitrust scrutiny.

Also Read: HST to VTR: Should you explore these 5 REITs as inflation shoots up?

Seagen, formerly Seattle Genetics, develops therapies to treat cancers. Its treatments use the monoclonal antibodies’ targeting ability to produce cancer cell-killing agents. 

Seagen’s lead product Adcetris has received six “indications approval” for treating Hodgkin lymphoma and T-cell lymphoma. It also licenses its antibody-drug conjugate technology to other leading pharmaceutical companies.

Also Read: Top agri stocks to watch amid rising prices: ADM, CTVA, MOS, BG & CF

Seagen (SGEN) stock roared 17% higher on Merck’s (MRK) buyout plan

Also Read: Five financial stocks to watch in Q3: FHN, Y, WRB, LPLA & PGR


Seagen brought its IPO in 2001. In the quarter ended March 31, 2022, it generated a revenue of US$426.4 million compared to US$331.98 million in the same quarter a year ago. The net loss was US$136.5 million versus a net loss of US$121.4 million in the previous year. 

Also Read: Top healthcare stocks to explore in June: JNJ, LLY, ABBV, MRK & BMY

Seagen had US$261 million in cash and cash equivalents as of March 31, 2022.

Its stock traded in the range of US$192.79 to US$105.43 in the last 52 weeks.

Also Read: GOGO to LPTV: Five communication stocks to watch in July

Bottom line:

According to analysts, Merck needs more pipeline products to bolster its portfolio. Merck CEO Robert Davis, they say, is looking for more do more deals. The S&P 500’s biotechnology Index fell around 7% YTD; RGEN stock dropped 5.7% YTD at the closing price of June 16.


The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.

Top Listed Companies