This Analyst Believes Seagen Is Evaluating Strategic Alternatives

Raymond James initiated coverage on Seagen Inc SGEN at Outperform with a $220 target price.
Citing the recent departure of the long-time Seagen CEO, Raymond James thinks that the Board of Directors is likely evaluating strategic alternatives for the company.
The relationship with Merck & Company, Inc. MRK has been long-standing. With Keytruda losing its patent and limited existing antibody-drug conjugate exposure, Merck could be seen as a viable bidder.
Related: Merck/Seagen Potential Deal Talks Pick Up Speed: WSJ
The biggest counterpoint to a potential buyout of Seagen is the cluster of potential patent expiry around 2030. The analysts estimate peak sales of ~$6.7 billion in 2030 but are likely below internal risk-modeled assessments.
"Overall, the expected growth of the existing Seagen commercial portfolio, significant optionality of label expansion for key programs such as PADCEV, and general increased interest in the ADC modality post-DestinyBreast-04, will likely support Seagen as a high-interest candidate," notes Raymond James.
Price Action: SGEN shares are down 0.15% at $178.40 during the market session on the last check Wednesday.

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