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According to the Wall Street Journal, Merck’s (NYSE:MRK) approximately $40 million deal to acquire Seagen (NASDAQ:SGEN) is “unlikely to be finalized” before Merck’s second quarter earnings release on July 28.
Following the news, Seagen shares have tumbled over 4%, while Merck shares are down 0.5%.
The WSJ, citing sources familiar with the matter, said talks remain on track but have been delayed. Earlier this month, they reported that Merck planned to acquire Seagen within a few weeks.
The delay and change in schedule are said to be due to the company needing to wait for data from a Seagen treatment study evaluating Seagen’s Padcev as a first-line treatment for bladder cancer.
In addition, the report states they are waiting on the outcome of a royalties-payments case Seagen is pursuing against Japanese drugmaker Daiichi Sankyo.
Both of these could alter Seagen’s valuation, although there is no guarantee of a deal.
