Seagen jumps on report Merck is said to eye possible acquisition

Jun. 17, 2022 10:35 AM ETSeagen Inc. (SGEN), MRKBy: Joshua Fineman, SA News Editor15 Comments

Merck & Co. headquarters in Silicon Valley

Sundry Photography/iStock Editorial via Getty Images

Seagen (NASDAQ:SGEN) skyrocketed 15% on a report that Merck & Co. (NYSE:MRK) is said to be eyeing an acquisition of the cancer-focused biotech.

Discussions have been going on for a while and no transaction is imminent, according to a DJ report. It's possible that no deal occurs and a marketing agreement is reached instead. Other unnamed companies are also said to be interested in Seagen (SGEN).

Seagen, formally known as Seattle Genetics, has a market cap of about $27 billion.

The news also comes after CNBC's Jim Cramer earlier Friday speculated that Merck (MRK) could purchase Seagen (SGEN) as the pharma giant already has a stake in SGEN.

"Look at this stock," Cramer said. "A reverse head and shoulders with buying every single day. Merck has a big piece. It reminds me very much of Biohaven with Pfizer."

The DJ report also comes after Seagen (SGEN) announced May 16 that Chairman and CEO Clay Siegal resigned amidst an alleged recent incident of domestic violence at his home. While the investigation continues, the board and Dr. Siegall agreed it is in the best interests of Seagen and its stakeholders for him to resign at this time.

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