This Acquisition Could Make Merck a Scorching-Hot Buy

Merck (NYSE: MRK) is one of the top healthcare companies in the world. Last year it reported close to $50 billion in revenue, and its stock pays a solid dividend that yields 3% per year. The only thing missing from the business is a big growth catalyst; sales over the past three years have only increased by 15%.

But now, Merck is rumored to be looking at potentially acquiring cancer-treatment company Seagen (NASDAQ: SGEN). If that happens, it could be a game-changer for Merck. Let's see why.

According to The Wall Street Journal, Merck and Seagen are meeting this week to discuss a possible deal. Merck has been rumored to be looking to acquire the company in an effort to bolster its portfolio. With a market cap of more than $32 billion, Seagen won't be a cheap buy, and other companies are supposedly interested in acquiring it as well. However, it's a deal that Merck should definitely pursue.

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Source Fool.com