Biopharma giant Merck is considering an acquisition of Seagen, the Seattle area’s biggest biotech company, according to a report in the Wall Street Journal Friday.
The Journal reported that “talks have been under way for a while, and a deal isn’t imminent.”
A spokesperson for Seagen declined to comment on the report.
From Seagen’s point of view, an acquisition “could make a world of sense,” according to William Canestaro, managing director at the Washington Research Foundation, who said the report took him by surprise.
“Merck would bring process, systems, and proven expertise in bringing drugs to market,” Canestaro told GeekWire. “Additionally, with the current turmoil in leadership, an acquisition now seems especially timely.”
Longtime CEO Clay Siegall, who co-founded the company more than 24 years ago, resigned in May in the wake of allegations of domestic abuse, which he denies, and an incident at his home where he was arrested. Chief medical officer Roger Dansey is acting CEO.
Bothell, Wash.-based Seagen employs more than 2,800 people in the Seattle area, Canada, and Europe. Seagen’s stock value was up more than 11% on Friday at market close, bringing the company’s market value to more than $30 billion. Merck stock was down slightly.
