Merck's talks with Seagen said to hit obstacle over price - report

Sundry Photography

• Merck & Co.'s (NYSE:MRK) discussions to purchase cancer-drug company Seagen (NASDAQ:SGEN) are said to have been put on hold.
• The talks are said to have ended over a disagreement on price, according to a Bloomberg report. The discussions could still resume and a deal could still happen.
• The news comes after a WSJ report last month indicated that potential Merck (MRK) purchase of Seagen (SGEN) for about $40 billion, or $200/share was delayed due to Daiichi Sankyo arbitration as well as a data readout for the Seagen’s bladder-cancer therapy Padcev.
• The WSJ had originally reported last month that a possible megadeal was expected by or before Merck reported its earnings on July 28.
• RBC Markets upgraded Seagen (SGEN) last Tuesday, writing that a recent pullback in company shares has made it a tempting buyout target.