Merck eyes $40 bln deal for biotech Seagen - WSJ

STORY: Drugmaker Merck & Co is in talks to buy biotech firm Seagen for around $40 billion.

That’s according to the Wall Street Journal.

At Wednesday’s (July 6) close of trade the firm was valued at just over $32 billion.

Neither firm would comment on the reports.

The Journal says the plan is to seal a deal on or before Merck’s second-quarter earnings report on July 28.

It says talks have been under way for some time.

Analysts say a deal makes sense, with Merck in need of new products to drive revenues.

If confirmed it would come after several other big takeovers were shelved.

The downturn in equity markets has hurt company valuations, and rising rates have made deals more expensive to finance.

Last week, U.S. department store chain Kohl’s called off its sale to Franchise Group after months of talks.

In June, Walgreens Boots Alliance scrapped plans to sell UK drugstore chain Boots.

It said no one was able to make a good offer amid the turmoil on financial markets.