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Seagen (SGEN) Likely to be Acquired by Pfizer Claims WSJ
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Seagen Inc. may be acquired by the large-cap pharma company Pfizer, Inc. (PFE - Free Report) at a mind-numbing valuation of more than $30 billion, according to a Wall Street Journal (WSJ) article.
Per the article, both companies have just initiated their rounds of negotiations and there is no guarantee of a deal at the moment. The follow-through of the deal banks on overcoming several hurdles which potentially include a strict antitrust review of any proposal.
Seagen’s stock rallied 17% in pre-market hours in response to the news. In the past year, shares of Seagen have risen 25.2% against the industry’s fall of 11.8%.
Image Source: Zacks Investment Research
If a deal is at all likely to happen, it would boost Pfizer’s portfolio of cancer drugs by adding a class of agents which have proven to be effective in working with immunotherapies against some of the most notorious tumors.
The deal could also help Pfizer recover about $17 billion in sales, which the company expects to lose due to the expirations of some of its patents by 2030. The rumored acquisition aligns with Pfizer’s strategic goal of adding $25 billion in revenues by the end of 2030 by developing its business.
Last year, Seagen was in advanced talks to be acquired by Merck & Co., Inc. (MRK - Free Report) at a valuation of $40 billion or more, per a WSJ article at the time. However, the deal did not follow through as the companies failed to reach an agreement.
Seagen boasts a strong portfolio of cancer drugs as well.
The company currently markets four cancer drugs — Adcetris, Padcev, Tukysa and the newly approved Tivdak.
In 2022, Seagen recorded total revenues of approximately $2 billion, portraying an almost 25% increase from 2021 results.
All these drugs have witnessed strong uptake so far, with Adcetris being the majority contributor to Seagen’s top line. The drug has been approved by the FDA for six cancer indications.
Several label expansion studies on Adcetris, Padcev, Tukysa and Tivdak are currently underway, wherein a potential approval is likely to drive sales, rolling into 2023. A potential deal is likely to ensure a diversified and broader customer base for the company as it would include Pfizer’s market expertise and superior global presence.
Seagen is collaborating with Merck, wherein the latter is co-funding the Tukysa global development plan. A regulatory filing seeking approval of Seagen’s Padcev, in combination with Merck’s Keytruda, has been granted a priority tag and is currently under review by the FDA for treating muscle-invasive bladder cancer.Adecision from the FDA is expected on Apr 21, 2023.
Also, Seagen and Merck are jointly developing ladiratuzumab vedotin, which is also currently being evaluated in early-to-mid-stage studies both as monotherapy and in combination with other agents for treating metastatic breast cancer and other LIV-1-expressing solid tumors.
Seagen’s diversification into the treatment of a form of breast cancer could be of particular interest to Pfizer, the latter already having a top-selling drug, named Ibrance, treating the condition.
We would also like to remind the investors that Pfizer acquired sickle cell drug maker, Global Blood Therapeutics, for more than $5 billion and the rest of Biohaven Pharmaceutical Holdings for more than $10 billion in 2022. This stands as proof of the strong cash position that Pfizer enjoys having made about $22.7 billion from sales of its COVID-19 vaccines, drugs and other products, last year.
In the past 90 days, the consensus estimate for ADMA Biologics’ 2022 loss per share has remained stable at a loss of 33 cents. But, during the same period, the loss estimate per share for 2023 has narrowed from 20 cents to 19 cents. Shares of ADMA Biologics have increased by 112.4%.
ADMA’s earnings beat estimates in three of the trailing four quarters, delivering an average earnings surprise of 1.81%.
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Seagen (SGEN) Likely to be Acquired by Pfizer Claims WSJ
Seagen Inc. may be acquired by the large-cap pharma company Pfizer, Inc. (PFE - Free Report) at a mind-numbing valuation of more than $30 billion, according to a Wall Street Journal (WSJ) article.
Per the article, both companies have just initiated their rounds of negotiations and there is no guarantee of a deal at the moment. The follow-through of the deal banks on overcoming several hurdles which potentially include a strict antitrust review of any proposal.
Seagen’s stock rallied 17% in pre-market hours in response to the news. In the past year, shares of Seagen have risen 25.2% against the industry’s fall of 11.8%.
Image Source: Zacks Investment Research
If a deal is at all likely to happen, it would boost Pfizer’s portfolio of cancer drugs by adding a class of agents which have proven to be effective in working with immunotherapies against some of the most notorious tumors.
The deal could also help Pfizer recover about $17 billion in sales, which the company expects to lose due to the expirations of some of its patents by 2030. The rumored acquisition aligns with Pfizer’s strategic goal of adding $25 billion in revenues by the end of 2030 by developing its business.
Last year, Seagen was in advanced talks to be acquired by Merck & Co., Inc. (MRK - Free Report) at a valuation of $40 billion or more, per a WSJ article at the time. However, the deal did not follow through as the companies failed to reach an agreement.
Seagen boasts a strong portfolio of cancer drugs as well.
The company currently markets four cancer drugs — Adcetris, Padcev, Tukysa and the newly approved Tivdak.
In 2022, Seagen recorded total revenues of approximately $2 billion, portraying an almost 25% increase from 2021 results.
All these drugs have witnessed strong uptake so far, with Adcetris being the majority contributor to Seagen’s top line. The drug has been approved by the FDA for six cancer indications.
Several label expansion studies on Adcetris, Padcev, Tukysa and Tivdak are currently underway, wherein a potential approval is likely to drive sales, rolling into 2023. A potential deal is likely to ensure a diversified and broader customer base for the company as it would include Pfizer’s market expertise and superior global presence.
Seagen is collaborating with Merck, wherein the latter is co-funding the Tukysa global development plan. A regulatory filing seeking approval of Seagen’s Padcev, in combination with Merck’s Keytruda, has been granted a priority tag and is currently under review by the FDA for treating muscle-invasive bladder cancer.Adecision from the FDA is expected on Apr 21, 2023.
Also, Seagen and Merck are jointly developing ladiratuzumab vedotin, which is also currently being evaluated in early-to-mid-stage studies both as monotherapy and in combination with other agents for treating metastatic breast cancer and other LIV-1-expressing solid tumors.
Seagen’s diversification into the treatment of a form of breast cancer could be of particular interest to Pfizer, the latter already having a top-selling drug, named Ibrance, treating the condition.
We would also like to remind the investors that Pfizer acquired sickle cell drug maker, Global Blood Therapeutics, for more than $5 billion and the rest of Biohaven Pharmaceutical Holdings for more than $10 billion in 2022. This stands as proof of the strong cash position that Pfizer enjoys having made about $22.7 billion from sales of its COVID-19 vaccines, drugs and other products, last year.
Seagen Inc. Price, Consensus and EPS Surprise
Seagen Inc. price-consensus-eps-surprise-chart | Seagen Inc. Quote
Zacks Rank and Stock to Consider
Seagen currently carries a Zacks Rank #3 (Hold).
A better-ranked stock in the biomedical and genetics industry is ADMA Biologics, Inc. (ADMA - Free Report) , carrying a Zacks Ranks #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 90 days, the consensus estimate for ADMA Biologics’ 2022 loss per share has remained stable at a loss of 33 cents. But, during the same period, the loss estimate per share for 2023 has narrowed from 20 cents to 19 cents. Shares of ADMA Biologics have increased by 112.4%.
ADMA’s earnings beat estimates in three of the trailing four quarters, delivering an average earnings surprise of 1.81%.