2023-05-16 08:41:41 ET
- Seagen ( NASDAQ: SGEN ), which agreed to be sold to Pfizer ( NYSE: PFE ) in a $43 billion deal in March, fell 5.3% in premarket trading amid reports that the Federal Trade Commission was set to challenge Amgen's ( AMGN ) $28 billion purchase of Horizon Therapeutics ( HZNP ).
- Prometheus Biosciences ( NASDAQ: RXDX ), which agreed to sell itself to Merck ( NYSE: MRK ) for ~$11 billion last month , fell 2.5% in premarket trading. Investors are concerned that the FTC could look to block other recently announced deals.
- "This development could put ongoing deals and future big deals in question - If this scrutiny is indeed related to stop bigger deals, we suspect it could make investors jittery around PFE-SGEN," Wells Fargo analyst Mohit Bansal wrote in a note on Tuesday. "MRK-RXDX is still a bolt on deal with zero revenues, so it might be ok. However, Big Biopharma may have challenge from now on while targeting mid-sized ($20-50B) deals."
- Developing story ....
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Seagen, Prometheus Biosciences fall amid news of FTC planned block of Horizon/Amgen deal