Pfizer Is Sending Seagen Stock Soaring Monday: What's Going On?

Seagen Inc (NASDAQ: SGEN) shares are trading higher Monday after Pfizer Inc (NYSE: PFE) announced plans to acquire the global biotech company.

What Happened: Seagen and Pfizer entered into a definitive merger agreement under which Pfizer will acquire Seagen for $229 in cash, representing a total enterprise value of $43 billion. Seagen and Pfizer's boards have both unanimously approved the transaction.

David Epstein, CEO of Seagen said: "The proposed combination with Pfizer is the right next step for Seagen to further its strategy, and this compelling transaction will deliver significant and immediate value to our stockholders."

Seagen said it expects to generate approximately $2.2 billion in revenue in 2023 from medicines, royalties and collaboration and license agreements, representing 12% growth on a year-over-year basis. Pfizer believes Seagen could contribute more than $10 billion in revenues in 2030.

"Together, Pfizer and Seagen seek to accelerate the next generation of cancer breakthroughs and bring new solutions to patients by combining the power of Seagen's antibody-drug conjugate (ADC) technology with the scale and strength of Pfizer's capabilities and expertise," said Albert Bourla, chairman and CEO of Pfizer.

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SGEN Price Action: Seagen shares are making new 52-week highs in early trading.

The stock was up 17.9% at $203.50 at time of publication, according to Benzinga Pro.

Photo: Chokniti Khongchum from Pixabay.