Pfizer (PFE) will buy cancer specialist Seagen (SGEN) for roughly $43 billion as Sanofi (SNY) takes over Provention Bio (PRVB) for about $2.9 billion, the companies announced Monday. In response, SGEN stock and PRVB stock rocketed.
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The Pfizer-Seagen deal is expected to close in late 2023 or early 2024, and values Seagen stock at $229 a share. Sanofi is paying $25 per share of PRVB stock. Provention is working on a treatment to delay the onset of type 1 diabetes in patients age 8 and older.
Seagen is an expert in targeting cancer using antibody drug conjugates, or ADCs. These treatments are like torpedoes, directly toxic chemicals at tumors to prevent damage to surrounding healthy tissue. This year, Seagen expects to generate $2.2 billion in sales, growing 12%.
In premarket trading on the stock market today, SGEN stock soared 15.9% near 200. Pfizer stock fell 1.8% near 38.70. PRVB stock catapulted 261% near 24.20 as Sanofi stock dipped a fraction near 47.20.
More to follow.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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Source: https://www.investors.com/news/technology/sgen-stock-prvb-stock-rocket-after-nabbing-takeover-deals/?src=A00220&yptr=yahoo