Merck's Potential Buyout Of Seagen Expected Within Next Few Weeks: Report

Merck & Co Inc MRK is in advanced talks to acquire Seagen Inc SGEN, and an agreement on a purchase is expected in the next few weeks, Wall Street Journal reported citing people familiar with the matter.
The potential deal could be worth roughly $40 billion or more.
Related: Merck/Seagen Potential Deal Talks Pick Up Speed.
The report added that the companies are discussing a price for Seagen above $200 a share.
There is still no guarantee that the companies will reach an agreement on a takeover deal.
The transaction can help offset the lower Merck sales when its flagship product Keytruda loses patent protection.
According to Cowen estimates, Keytruda could approach 40% of Merck’s sales in 2027.
Also Read: This Analyst Believes Seagen Is Evaluating Strategic Alternatives.
Any proposed deal is expected to draw a close look from antitrust officials, with Cowen analysts recently predicting “a high likelihood” of litigation from the Justice Department or the Federal Trade Commission.
Price Action: SGEN shares are up 4.35% at $182.75 during the premarket session on the last check Thursday.