Why Seagen Stock Perked Up Today
Shares of the cancer specialist Seagen (NASDAQ: SGEN) were up by 10.2% as of 3:14 p.m. ET Monday afternoon. The big gain came after a Wall Street Journal article revealed that Pfizer (NYSE: PFE) is considering a bid for the drugmaker. Talks are preliminary in nature, and a buyout is not imminent, according to the WSJ report.
Last year, Seagen was rumored to be engaged in buyout talks with Merck. After the two companies couldn't agree on price, Merck walked away from negotiations last August, according to Bloomberg.
Seagen is presently valuated at approximately $33 billion. Industry experts expect the company to go for a little north of $40 billion in a buyout scenario. Seagen's shares, in turn, ought to have another 21%-plus upside from current levels in the event Pfizer does indeed go through with this transaction.
Source Fool.com
