The Clap
According to sources, Pfizer (NYSE:PFE) is reportedly in talks to acquire Seagen (NASDAQ:SGEN) in a multi-billion dollar deal.
What
The deal is expected to be worth upwards of $30 billion. However, several obstacles may be ahead of the deal, including an antitrust review of any proposal to acquire the company.
In mid-2022, Merck was in talks with Seagen over a potential acquisition but the deal had eventually fallen apart amid fears that the Federal Trade Commission (FTC) would launch an antitrust investigation.
So What
The deal is expected to work out well in Pfizer’s favor, given that many of the patents for its products are set to expire, potentially costing the business more than $17 billion in annual sales.
In addition, declining demand for COVID products is also expected to take its toll on the company’s financials.
Now What
Seagen saw its stock surge more than 10% following the reports, while Pfizer’s stock declined a little over 2% following the news.
