Power-Alley, Returns: I've Ignored This Persistent Rumor For Weeks Now... But It Seems More Concrete This Morning.

I've largely ignored it because the original rumor mill had it that Merck's Rob Davis was interested mostly because he felt the oncology focused R&D pipeline could be snagged on the cheap, as the former Seagen CEO departed after a pretty well verified domestic battery arrest.

It seemed that one would first look at the science, not the fallen team-leader, to decide whether to bid. But now that the figures represent an over 25 per cent premium from a few weeks' prior NASDAQ prices. . . it begins to look like a more run of the mill M&A deal, at fair values. Here's the latest, from Bloomberg, but with the WSJ being closest to to the involved parties:

. . .Merck & Co. is in advanced talks to acquire Seagen Inc. and could reach an agreement as soon as this month, people familiar with the matter said.

An offer price of at least $200 per share is under discussion, one of the people said. That would represent a roughly 14% premium to Seagen’s last closing price and translate into a valuation of $37-$40 billion or more, data compiled by Bloomberg show. . . .

So now you know. . . the whole "Keytruda coming off patent" narrative, as a reason for the deal. . . is mostly silly. That won't be until the early 2030s, with evergreening of those patents. Onward, then. . . grinning. Baby girl here all day tomorrow -- with parks and paleta men, in our future!

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