(Updated - July 18, 2022 9:59 AM EDT)

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.

By Sam Boughedda