Seagen’s stock surges after WSJ reports $31 billion-valued biotech is being eyed by Merck
Shares of Seagen Inc.
SGEN,
shot up 14.7% toward a seven-month high in morning trading Friday, after The Wall Street Journal reported that Merck & Co. Inc.
MRK,
is looking into buying the cancer-focused biotechnology company. Meanwhile, drug-maker Merck’s stock eased 0.2%. Although terms of a potential buyout were not mentioned in the report, Seagen’s market capitalization was about $31.2 billion at current stock prices. Citing people familiar with the matter, the WSJ report said talks have been under way for a while and a deal isn’t imminent, and the companies could only strike a marketing agreement. Seagen’s stock has climbed 8.9% year to date and Merck shares have advanced 10.6%, while the iShares Biotechnology ETF
IBB,
have tumbled 28.4% and the Dow Jones Industrial Average
DJIA,
as lost 18.1%.
