- 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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