Pharmaceutical giants Pfizer and Merck are reportedly competing to acquire biotechnology company Seagen, according to sources familiar with the matter. Seagen specializes in developing cancer treatments using technology to target tumors.
The company’s current market value is around $41 billion, and the acquisition would allow either Pfizer or Merck to expand their oncology portfolios.
Pharmaceutical companies Pfizer and Merck are reportedly showing interest in acquiring cancer drugmaker Seagen, formerly known as Seattle Genetics. The news follows last year’s reports that Merck’s bid to acquire Seagen ended due to pricing disputes. Seagen has nearly $2 billion in annual revenue and an expanding pipeline of antibody-drug conjugates (ADC).
Out of its four approved cancer therapies, two of them, Padcev and Tukysa, are considered among the top ten cancer drugs with blockbuster potential based on projected annualized growth. Seagen, with partners Merck and Astellas, is waiting for label expansion for Padcev with Keytruda as a first-line option for certain patients with metastatic urothelial cancer.
Despite buyout interest, Seagen saw a decline of 17% in 2022, underperforming other cancer drugmakers like Genmab and Incyte Corporation. However, Wall Street has remained bullish on Seagen, and some analysts consider it a prime buyout candidate for companies like Pfizer and Merck.