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The Wall Street Journal

July 6, 2022, 10:58 p.m. EDT

Merck in talks to buy cancer biotech Seagen for about $40 billion

Cara Lombardo, Dana Cimilluca, Jonathan D. Rockoff

Merck & Co. (NYS:MRK) (ETR:XE:MRK) is in advanced talks to acquire Seagen Inc. (NAS:SGEN) and is aiming to finalize a purchase of the cancer biotech in the next few weeks, according to people familiar with the matter, in a deal that could be worth roughly $40 billion or more.

The companies are discussing a price for Seagen above $200 a share and are seeking to seal a deal on or before the announcement of Merck’s second fiscal-quarter earnings, set for July 28, the people said. Seagen’s stock closed at $175.13 on Wednesday.

There is still no guarantee the companies will reach agreement on a takeover deal.

New Jersey-based Merck has a market value of around $235 billion. Acquiring Seagen would help broaden its lineup of cancer drugs, currently led by the blockbuster immunotherapy Keytruda, the company’s top-selling product with $17.2 billion in sales last year.

An expanded version of this report appears on WSJ.com.

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