Seagen's recent licensing deals signal M&A unlikely this year - William Blair

LAVA Therapeutics NV

27/09/2022 16:39

** Brokerage William Blair says Seagen's  SGEN.O  recent
focus on organic growth could solidify view that the cancer
drugmaker will not enter into an M&A deal this year
    ** Naming a new permanent CEO will also cement the view that
M&A is unlikely this year - brokerage
    ** Brokerage's comments come after SGEN gives China-focused
Zai Lab  ZLAB.O  exclusive rights to develop and commercialize
cervical cancer drug Tivdak in Mainland China, Hong Kong, Macau,
and Taiwan  urn:newsml:reuters.com:*:nGNX6gXd7D
    ** SGEN shares up 1.8% at $137.71 in morning trade while
ZLAB up 5% at $39.22
    ** SGEN's deal with ZLAB follows another agreement on Monday
where it obtained license from LAVA Therapeutics  LVTX.O  for an
experimental cancer drug
    ** Merck's  MRK.N  talks to buy SGEN have stalled for now,
Bloomberg reported last month  urn:newsml:reuters.com:*:nL4N30224K
    ** Exit through M&A not central to positive view on SGEN as
co can generate significant free cash and growth through 4
FDA-approved cancer products: Adcetris, Padcev, Tukysa and
Tivdak - William Blair
    ** Brokerage Jefferies expects Tivdak to be a $500 mln plus
drug in China even after large pricing cuts 
 (Reporting by Leroy Leo in Bengaluru)
 ((Leroy.Dsouza@thomsonreuters.com ; Twitter: https://twitter.com/LeroyLeo7;))