Seagen (NASDAQ:SGEN) stock is taking off on Monday as investors react to an acquisition deal with Pfizer (NYSE:PFE).
Pfizer is acquiring Seagen for $43 billion in cash. That has the deal valuing shares of SGEN stock at $229 each. This represents a roughly 32.7% premium compared to the stock’s prior closing price on Friday.
With this news, Pfizer is making a major bet on Seagen and its cancer treatment research. It seeks to combine Seagen’s antibody-drug conjugate with its own scale and reach to accelerate cancer treatment.
Chris Boshoff, Chief Development Officer Oncology and Rare Disease at Pfizer said the following about the deal:
“The addition of Seagen’s world-leading ADC technology will position us at the forefront of innovative cancer care, and strongly complements our existing portfolio across both solid tumors and hematologic malignancies.”
More Details of the SGEN Stock Deal
Both companies’ boards of directors have already given their full support to the acquisition. That just means it needs approval from regulators and shareholders. If all goes well, the companies expect the deal to close in late 2023 or early 2024.
SGEN investors are excited about today’s news, with some 4 million shares on the move this morning. That’s already above its daily average trading volume of about 1.1. million shares. It also helps explain the 16.4% increase the stock is seeing as of Monday morning.
Investors seeking out more of the latest stock market news will want to stick around!
We’ve got all of the hottest stock market coverage traders need to know about on Monday! That includes what’s moving shares of Mullen Automotive (NASDAQ:MULN), Signature Bank (NASDAQ:SBNY), and SoFi Technologies (NASDAQ:SOFI) stock today. You can read more on these matters at the following links!
More Monday Stock Market News
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.