UPDATE: Raymond James Starts Seagen (SGEN) at Outperform

(Updated - June 29, 2022 6:23 AM EDT)

Raymond James analyst Dane Leone initiates coverage on Seagen (NASDAQ: SGEN) with a Outperform rating and a price target of $220.00.

The analyst comments "We are initiating Seagen at Outperform with a $220 target price. The stock has recently been bid higher around disclosure from reputable news sources that Merck is in talks to potentially acquire the company (link). Given the recent departure of the long-time Seagen CEO, we think that it is likely the Board of Directors is evaluating strategic alternatives for the company. The relationship with Merck, specifically, has been long-standing and given the needs of Merck around KEYTRUDA patent expiry and limited existing Antibody-Drug Conjugate exposure, Merck could be seen as a viable bidder. That said, our analysis of potential strategic acquirers does suggest that there could be interest from other large biopharma companies as well. Overall, expected growth of the existing Seagen commercial portfolio, significant optionality of label expansion for key programs such as PADCEV, and general increased interest in the ADC modality post Destiny-Breast04, will likely support Seagen as a high-interest candidate. The biggest counterpoint to an imminent takeout of SGEN are the cluster of potential patent expiry around the 2030 timeframe. We provide key points to our peak sales estimate of ~$6.7B in 2030, but are likely below internal risk-modeled assessments that the BoD would be using in talks with a potential acquirer."

For an analyst ratings summary and ratings history on Seagen click here. For more ratings news on Seagen click here.

Shares of Seagen closed at $178.47 yesterday.

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