Pfizer Announces Acquisition of Seagen; Raising Seagen’s FVE to Takeover Price of $229

Equity Analyst

Rachel Elfman

We think Seagen is well positioned with its robust portfolio of internally developed antibody-drug conjugates, and we expect label expansions for its three approved drugs will push the firm into profitability in the next couple of years. 

Its leading ADC technology has allowed Seagen to develop an internal pipeline of innovative cancer treatments and become the partner of choice for leading oncology players. The technology improves the potency and safety of cancer-targeting monoclonal antibodies by linking them to potent cell-killing drugs (chemotherapies), enhancing antitumor activity while reducing the potential toxicity. This approach has yielded remarkable results. In addition to strong results from Adcetris, approved for Hodgkin and some types of non-Hodgkin lymphoma, and Padcev, approved for previously treated bladder cancer, the company's leading pipeline candidates have exhibited promising efficacy in various cancer indications. 

Adcetris was approved by the Food and Drug Administration in 2011 and is commercially available in more than 75 countries. Due to its efficacy, we think Adcetris will hold its strong position in Hodgkin lymphoma, and we see ample room to grow in non-Hodgkin lymphoma over the next several years. We also think trials of Adcetris in combination with checkpoint inhibitors, such as Bristol's Opdivo, offer further runway for growth. 

Padcev, approved late 2019 for urothelial cancer, showed strong results in previously treated patients and could see future approvals in combination with a checkpoint inhibitor, Merck's Keytruda, in the front-line setting. This could significantly expand the addressable patient population and improve the efficacy offered by systemic chemotherapy. Tukysa was approved in 2020 for previously treated HER2-positive breast cancer, including patients with brain metastases. The FDA approved Tivdak in September 2021 for metastatic cervical cancer.

Seagen's late-stage candidates are ladiratuzumab vedotin for triple-negative breast cancer and disitamab vedotin for treating solid tumors, including gastric cancer. We believe new data will continue to bolster the medical community's confidence in ADCs for cancer.

Business Strategy & Outlook

We believe Seagen has earned a narrow economic moat rating based on the intangible assets from its development of antibody-drug conjugates for various cancer indications. Its lead drug, Adcetris, was first approved by the FDA in 2011 and has garnered approvals in several indications for both Hodgkin and T-cell lymphomas. Adcetris is the standard of care for patients with Hodgkin lymphoma and peripheral T-cell lymphoma, and it is commercially available in more than 75 countries. We continue to believe Adcetris is not likely to see serious competition in the next several years. Padcev, approved in late 2019 for previously treated bladder cancer, was the second approved ADC in Seagen's portfolio and is poised for further studies in combination with Merck’s Keytruda. In April 2020, Tukysa received approval from the FDA for metastatic HER2-positive breast cancer. Seagen's pipeline looks healthy, with several candidates approaching pivotal data readouts and regulatory approval, which will drive increasing returns. Further, we think the company's ADC technology positions it to target difficult-to-treat indications and significantly improve on existing chemotherapy regimens. With highly effective technology in lucrative indications, protected by patents that last until 2036, we believe it is more likely than not Seagen will be able to earn excess returns over the next 10 years and warrants a narrow economic moat rating. 

Seagen's impressive portfolio of cancer therapies reflects a strong research and development strategy. Seagen has two late-stage programs, ladiratuzumab vedotin and disitamab vedotin, which are advancing toward securing approvals. Many of Seagen’s early-stage candidates are supported by early or interim data readouts that indicate strong efficacy and reasonable safety profiles. Seagen's ADC technology has been in development since the late 1990s, and this new class of drugs, antibody-drug conjugates, is reaching broader approval as the difficulties of heterogeneous efficacy and toxic side effects have been resolved.

Improvements to the linker, drug, antibody, and antigen selection have allowed for a wider therapeutic window for ADCs that makes the class more viable to work with than previous generations. The efficacy of the drug class in difficult-to-treat diseases is demonstrated by some of Seagen's leading therapies, such as Padcev in metastatic urothelial cancer and Tukysa in previously treated breast cancer. Padcev showed impressive results in previously treated patients, spurring speedy regulatory approval in the U.S. in late 2019. To further demonstrate the potential and strong efficacy of ADCs, when Padcev was combined with Merck's Keytruda (a checkpoint inhibitor) in its phase 1/2 trial, 71% of patients experienced tumor remissions for advanced bladder cancer, including 13% with complete remission responses. Another 22% of patients had stable disease without further progression. Tukysa has been approved in 36 countries, including the U.S. and the European Union. Seagen also granted Merck an exclusive license to commercialize Tukysa in Asia, the Middle East, Latin America, and other regions outside of the U.S., Canada, and Europe, which will further accelerate the commercialization of Tukysa. 

We think that ADCs will play an increasing role in the standards of care for cancer, with our projections for key ADCs in our coverage approaching $7 billion in sales. This new class of drugs can eliminate the need for toxic chemotherapies and can be combined with efficacious checkpoint inhibitors to address indications with unmet need. Seagen's pipeline is full of ADCs, all internally developed with Seagen's proprietary platform. The company's technology has also won votes of confidence from large pharmaceutical and biotech firms, such as Roche, AbbVie, Bayer, Genmab, and GlaxoSmithKline, all of which have used Seagen's ADC technology and provided Seagen with steady licensing revenue and royalties. 

While several other firms are developing their own ADCs and ADC technology platforms, Seagen has patent protection through 2036 based on its current intellectual property, and we expect new iterations of the technology to earn additional patents. We think Adcetris and Padcev alone could allow the firm to earn excess returns over the next 10 years, and both candidates will benefit from patent protection for the next 10 years. Additionally, both Adcetris and Padcev tackle difficult-to-treat areas that are unlikely to see real competitors any time soon, based on current drug pipelines across the industry. Overall, Seagen's ADC portfolio boasts a unique combination of highly effective and lucrative areas of focus that bolsters our confidence in its returns. 

Adcetris' label expansions and approvals of Padcev and Tukysa already provide healthy diversification, and Seagen's portfolio will continue to grow with its pipeline success. Before awarding a company a narrow moat, we like to see a well-protected and diversified revenue stream. We think that Adcetris and Padcev provide ample near-term diversification for Seagen, which we believe will only improve with additional label expansions and approvals of other indications. Adcetris has a unique mechanism of action that targets the CD30 antigen, and we don't see any competitors encroaching on its niches of lymphoma. We also reiterate that Padcev is targeting bladder cancer, which is an exceptionally difficult to treat cancer, and it induces high response rates prolonging progression-free survival and overall survival. 

Adcetris, Padcev, and Tukysa are well-protected assets that should drive cash generation as the company commercializes its recently approved drug, Tivdak, for cervical cancer and continues to develop its other pipeline candidates. Seagen’s highly effective ADC technology in lucrative indications and strong patent protections support the company’s narrow moat as we believe it is more likely than not Seagen will be able to earn excess returns over the next 10 years.

Narrow

Economic Moat

Seagen

Seagen Inc. is a biotechnology company, which engages in the development and commercialization of antibody-based therapies for the treatment of cancer. Its products include Adcetris and Padcev. The firm is also advancing a pipeline of novel therapies for solid tumors and blood-related cancers. The company was founded by Clay B. Siegall and H. Perry Fell on July 15, 1997, and is headquartered in Bothell, WA.

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Seagen Inc. is a biotechnology company, which engages in the development and commercialization of targeted therapies for the treatment of cancer. It also engages in the advancement of therapies for solid tumors and blood-related cancers. Its products include Adcetris, Padcev, Tivdak, and Tukysa. The company was founded by Clay B. Siegall and H. Perry Fell on July 15, 1997 and is headquartered in Bothell, WA.

BOTHELL, Wash.--(BUSINESS WIRE)--Following a special meeting of its stockholders, Seagen Inc. (Nasdaq: SGEN) today announced that its stockholders voted to approve a proposal to adopt the previously announced merger agreement under which Pfizer will acquire Seagen for $229 per share in cash. More than 99% of the shares voted at the meeting, representing approximately 88% of the shares of Seagen common stock issued and outstanding as of the record date for the special meeting, were voted in favo.

Seagen Stockholders Approve Acquisition by Pfizer

Amgen

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Pfizer Inc. NYSE: PFE continued its downward trajectory on May 17, following news that the Federal Trade Commission is seeking to block Amgen Inc.'s NASDAQ: AMGN planned acquisition of Horizon Therapeutics Plc NASDAQ: HZNP.

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The debt offering by Pfizer to buy cancer drug maker Seagen comes as Apple, Merck and T-Mobile tap the U.S. bond market ahead of the debt ceiling standoff.

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Pfizer (PFE) offers bonds worth $31 billion to fund its pending acquisition of cancer drugmaker, Seagen (SGEN).

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Pfizer's acquisition of cancer-focused biotech Seagen, announced in March, would be its biggest since 2009. The deal faces risks.

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Pfizer Inc is planning to raise $31 billion through its largest debt offering to finance its proposed acquisition of Seagen Inc , the drugmaker said late on Tuesday.

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Seagen (NASDAQ: SGEN ) stock is slipping on Tuesday after one of the company's directors sold some of their shares. According to a filing with the Securities and Exchange Commission (SEC), Seagen director Daniel Welch sold 1,864 shares of SGEN stock.

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Prometheus Biosciences

Reports the FTC could block Amgen's takeover of Horizon reverberated across biotech stocks on Tuesday, with HZNP stock's crash leading the way. The post Horizon Tumbles — Taking Seagen, Prometheus With It — On Reports FTC Could Block Its Amgen Takeover appeared first on Investor's Business Daily.

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Seagen (SGEN) reports worse-than-expected results in the first quarter of 2023, missing both earnings and sales estimates.

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Seattle Genetics (SGEN) came out with a quarterly loss of $0.93 per share versus the Zacks Consensus Estimate of a loss of $0.82. This compares to loss of $0.74 per share a year ago.

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BOTHELL, Wash.--(BUSINESS WIRE)--Seagen Inc. (Nasdaq:SGEN) (Seagen or the Company) reported financial results today for the first quarter ended March 31, 2023. The Company also highlighted performance across its approved product portfolio, development accomplishments, and progress across its differentiated oncology pipeline of innovative ADCs and targeted therapies. “Seagen delivered strong performance in the first quarter, with significant growth of 22 percent for both total revenue and net pr.

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NEW ORLEANS--(BUSINESS WIRE)--Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC (“KSF”) are investigating the proposed sale of Seagen Inc. (NasdaqGS: SGEN) to Pfizer Inc. (NYSE: PFE). Under the terms of the proposed transaction, shareholders of Seagen will receive $229 in cash for each share of Seagen that they own. KSF is seeking to determine whether this consideration and the process that led to it are adequate, or whether the consi.

SEAGEN INVESTOR ALERT by the Former Attorney General of Louisiana: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of Seagen Inc. - SGEN

BOTHELL, Wash.--(BUSINESS WIRE)--Seagen Inc. (Nasdaq: SGEN) today announced the presentation of 17 abstracts at the upcoming 2023 American Society of Clinical Oncology (ASCO) Annual Meeting taking place June 2-6, 2023, in Chicago. Data will be presented across Seagen's portfolio of approved medicines and pipeline agents in a range of cancer types and in earlier lines of therapy. “Seagen has worked towards revolutionizing cancer care for 25 years by linking scientific innovation to meaningful im.

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NEW YORK--(BUSINESS WIRE)--Halper Sadeh LLC, an investor rights law firm, is investigating whether the sale of Seagen Inc. (NASDAQ: SGEN) to Pfizer Inc. for $229.00 in cash per share is fair to Seagen shareholders. Halper Sadeh encourages Seagen shareholders to click here to learn more about their legal rights and options or contact Daniel Sadeh or Zachary Halper at (212) 763-0060 or sadeh@halpersadeh.com or zhalper@halpersadeh.com. The investigation concerns whether Seagen and its board of dir.

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Buy Seagen Now For An Attractive M&A Arbitrage Opportunity

Pfizer's cash deal for Seagen benefits shareholders. Seagen's pipeline of antibody-drug conjugates (ADCs) looks promising.

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BOTHELL, Wash.--(BUSINESS WIRE)--Seagen Inc. (Nasdaq: SGEN) today announced that it will report its first quarter 2023 financial results on Thursday, April 27, 2023. Given the recently announced agreement to be acquired by Pfizer Inc., Seagen will not be hosting a conference call. About Seagen Seagen is a global biotechnology company that discovers, develops and commercializes transformative cancer medicines to make a meaningful difference in people's lives.

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The FDA grants accelerated approval to Seagen (SGEN) and partner, Astellas' combination therapy of Padcev with Merck's Keytruda for the treatment of first and second-line metastatic urothelial cancer.

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– First treatment option combining an antibody-drug conjugate plus a PD-1 inhibitor in this patient population – TOKYO and BOTHELL, Wash. , April 3, 2023 /PRNewswire/ -- Astellas Pharma Inc. (TSE: 4503, President and CEO: Naoki Okamura, "Astellas") and Seagen Inc. (Nasdaq: SGEN) today announced the U.S. Food and Drug Administration (FDA) has granted PADCEV® (enfortumab vedotin-ejfv) with KEYTRUDA® (pembrolizumab) accelerated approval in the U.S. as a combination therapy for the treatment of adult patients with locally advanced or metastatic urothelial cancer (la/mUC) who are not eligible to receive cisplatin-containing chemotherapy.

FDA Grants Accelerated Approval for PADCEV® (enfortumab vedotin-ejfv) with KEYTRUDA® (pembrolizumab) for First-Line Treatment of Locally Advanced or Metastatic Urothelial Cancer

Clay Siegall, the Seagen founder who resigned last year following an arrest and allegations of domestic violence, is jumping back into the biotech world as CEO and president of Morphimmune.

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