SGEN

Seagen Inc.

139.20
USD
-0.96%
139.20
USD
-0.96%
105.43 192.79
52 weeks
52 weeks

Mkt Cap 25.45B

Shares Out 182.86M

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Seagen upgraded at RBC citing buyout prospects after arbitration outcome

RBC Capital Markets has upgraded oncology-focused biotech Seagen Inc. (NASDAQ:SGEN), arguing that the recent pullback in company shares has made it a tempting buyout target. Seagen (SGEN) continued to drop after the company announced Friday an unfavorable arbitration outcome to its dispute with the Japanese pharma Daiichi Sankyo (OTCPK:DSKYF) (OTCPK:DSNKY) over the antibody-drug conjugate (ADC) technology. “Strategically, to us, the stars align – and we believe it is worth making a responsible recommendation, especially with the arbitration clarity that arrived on Friday,” the analysts Gregory Renza and Yinglu Zhang wrote, upgrading the stock to Outperform from Sector Perform. Despite a loss of some royalty upside, the unfavorable arbitration decision keeps the status quo of Seagen’s (SGEN) commercial portfolio while the company continues to trade at takeout premium levels, the analysts added. The team argues that the recent news flow and execution indicate a floor value for Seagen (SGEN), leaving more clarity and confidence in the company’s product portfolio. RBC raised the price target on the stock to $188 from $179 per share. The upgrade comes amid speculation that Merck (MRK) is in advanced talks to acquire Seagen (SGEN) in a potential deal worth about $40B or more.

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