With $1.7B in Merck deals, Seattle Genetics plots broader pipeline
Merck deals give Seattle Genetics $725M in cash, $1B in equity up front
A pair of deals with Merck on Monday gives Seattle Genetics $1.7 billion in cash before counting any milestones, enough to bring additional cancer programs or ADC technologies into the fold via in-licensing or M&A as it pursues a series of label expansions and INDs.
Seattle Genetics Inc. (NASDAQ:SGEN) and Merck & Co. Inc. (NYSE:MRK) will develop ladiratuzumab vedotin as monotherapy and with Keytruda pembrolizumab in triple-negative breast cancer (TNBC), hormone receptor-positive breast cancer and other solid tumors. The biotech will receive $1.6 billion up front, including $1 billion via an equity investment by Merck. The pharma will buy 5 million shares at $200, a premium of 33% over Seattle Genetics’ close of $149.97 on Friday. Seattle Genetics is also eligible for $2.6 billion in milestones...