$SGEN was acquired by $PFE earlier this year for $229/share and set to close ~Q4 '23/Q1 '24. Currently trading at $198 for potential 15% gain. The merger is all cash and concerns about anti-trust regulation seem to have been quelled by recent divestments. There is a huge multibillion dollar penalty if it were to not go through, so it seems good motivation to get it done. Shareholders still have to approve, but seeing as it was bought at quite a premium, I can't imagine that will be an issue. The biotech realm may be a little spooked about regulation blowing deals up, as was done with Illumina's acquisition of Grail, but this feels more solid. Many ADC companies in the same space are being snapped up, so I would expect this will go through. Money isn't cheap anymore and likely isn't getting cheaper, so I could see how this may not be as attractive a play as other parts of the market for a longer hold. But 15% in <12mo would be a solid return for anyone I would think!
What are your thoughts??
Leave a Reply