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.
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Why Seagen Stock Perked Up Today