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Merck Merck’s Seagen Deal to be Delayed Says WSJ

2022.07.18 17:37

Merck Merck's Seagen Deal to be Delayed Says WSJ
Merck (MRK) Merck’s Seagen (SGEN) Deal to be Delayed Says WSJ

By Sam Boughedda

According to the Wall Street Journal, Merck’s (NYSE:MRK) approximately $40 million deal to acquire Seagen (NASDAQ:SGEN) is “unlikely to be finalized” before Merck’s second quarter earnings release on July 28.

Following the news, Seagen shares have tumbled over 4%, while Merck shares are down 0.5%.

The WSJ, citing sources familiar with the matter, said talks remain on track but have been delayed. Earlier this month, they reported that Merck planned to acquire Seagen within a few weeks.

The delay and change in schedule are said to be due to the company needing to wait for data from a Seagen treatment study evaluating Seagen’s Padcev as a first-line treatment for bladder cancer.

In addition, the report states they are waiting on the outcome of a royalties-payments case Seagen is pursuing against Japanese drugmaker Daiichi Sankyo.

Both of these could alter Seagen’s valuation, although there is no guarantee of a deal.

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