Merck Looks to Acquire Seagen – WSJ

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According to a report by The Wall Street Journal on Friday, Merck (NYSE:MRK), the pharmaceutical colossus, is looking into the acquisition of Seagen, Inc. (NASDAQ:SGEN).

Seagen is an American biotechnology company based in Washington.

The Wall Street Journal, citing people familiar with the matter, said talks have been ongoing for some time, but a deal is not yet imminent. However, they warned that any deal could be tricky due to the elevated risk of a regulatory challenge.

According to the report, an alternative is a marketing agreement between the two companies. Even so, they said there are also other potential suitors for Seagen, although any deal would be enormous given Seagen’s approximately $28 billion market valuation.

Seagen shares jumped 16% following the report.