Merck's ( NYSE: MRK ) potential $40 billion acquisition of Seagen ( NASDAQ: SGEN ) is not likely to happen ahead of the pharma co.'s earnings later this month, though talks still remain on track.
The WSJ reported earlier this month that Merck ( MRK ) was targeting completing an agreement to purchase the cancer biotech firm within a few weeks, though that plan has been delay, according to new WSJ reporting . Merck is scheduled to report Q2 results on July 28.
The delay is partly because of the need to wait for data expected from a study looking at one of Seagen's ( SGEN ) treatments for bladder-cancer patients called Padcev, according to the WSJ. There's also expected soon to be an outcome in royalty-payments case involving Seagen ( SGEN ) and Japanese drugmaker Daiichi Sankyo.
The WSJ report comes after Seagen ticked up 1.3% in Friday trading after the Patent Trial and Appeal Board upheld a patent in a dispute the company has with Daichi Sankyo ( OTCPK:DSKYF ), according to a PTAB r uling. The PTAB ruling followed Seagen winning a patent trial in Texas in April related to the same patent in dispute. Seagen was awarded $41.8 million in the patent dispute.
Morgan Stanley reiterated in a note on Monday said that it expects a decision in Seagen's arbitration with Daiichi will happen in mid-2022 and its base case is that Seagen ( SGEN ) will receive 5-10% royalties on Enhertu global sales. MS estimate this would represent ~$12-$24 in equity value/share to SGEN.
The WSJ reported last Wednesday that companies are in talks for a takeover consideration above $200 per share for Seagen ( SGEN ).
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Merck potential purchase of Seagen said unlikely by earnings date - report