Seagen drops most since May on reports of delayed Merck deal

Jul. 18, 2022 9:49 AM ETSeagen Inc. (SGEN)MRK, DSKYF, DSNKYBy: Dulan Lokuwithana, SA News Editor5 Comments

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  • The shares of cancer-focused biotech Seagen (NASDAQ:SGEN) have shed ~4% in the morning hours Monday to record the biggest intraday loss since May after the Wall Street Journal reported a potential delay for company’s widely expected buyout deal with Merck (MRK).
  • Early this month, The Journal said that Merck (MRK) was in advanced talks to acquire Seagen (SGEN) in a deal worth about $40B or more. An agreement in this regard was expected on or before Merck’s (MRK) quarterly release at the end of July.
  • However, in a follow up report, WSJ said that the deal is unlikely to finalize before the pharma giant’s earnings date on July 28.
  • The reasons for the delay are said to be an upcoming data readout for the Seagen’s (SGEN) bladder-cancer therapy Padcev and an impending outcome of a lawsuit between the company and Japanese drugmaker Daiichi Sankyo (OTCPK:DSKYF) (OTCPK:DSNKY) over royalty payments.
  • Read: Seagen (SGEN) shares plunged over 10% in early May after the company disclosed that its Chief Executive was taking a leave of absence amid allegations of domestic violence.

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