- In a news article by the Wall Street Journal, Pfizer Inc (NYSE:PFE) is reportedly in early-stage talks to acquire Seagen Inc (NASDAQ:SGEN) for over $30 billion.
- In June last year, the Wall Street Journal reported that Merck & Co Inc (NYSE:MRK) showed interest in buying Seagen.
- In the article, the deal was reported to be a price of at least $200 a share, equivalent to roughly $40 billion or more.
- William Blair writes that since the discussions between Seagen and Pfizer are reported to be “early stage” in nature, it cautions investors not to overreact to the news.
- Keeping its top pick, the analyst reiterates its Outperform rating on Seagen.
- If the deal happens, with the M&A process, there will be several hurdles to overcome (including FTC concerns), and the entire process could take months to materialize.
- The analyst says it would be surprised by a decision to sell the company unless it transacts at or above the previously reported price of $40 billion (or $215 per share)
- William Blair’s bullish thesis is based on the long-term growth potential, driven by approved products—Adcetris, Padcev, Tukysa, and Tivdak; and expanding late- and early-phase assets within the company’s pipeline.
- Although, the analyst said some volatility is expected due to the potential of Padcev to disrupt the urothelial carcinoma space with the upcoming approval on or before April 21.
- Price Action: SGEN shares are up 9.62% at $176.90 on the last check Monday.
Has Bitcoin Improved As A Flight To Safety Investment?
Bitcoin (CRYPTO: BTC) bulls have had a great run in the past couple of years, and many argue that the popular cryptocurrency has replaced gold as the best way to protect your portfolio from downside in the stock market.
