The Wall Street Journal reported that the biopharmaceutical giant Pfizer (NYSE:PFE) could acquire Seagen (NASDAQ:SGEN), a multi-product biotechnology company that develops medicines targeting cancer. The deal could enhance PFE’s therapies targeting cancer.
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The report highlighted that a deal could value Seagen at a significant premium over its current market cap. Seagen has a market cap of over $30 billion based on its closing price of $161.37 on February 24. Meanwhile, the company generated total revenue of $2 billion in 2022.
SGEN stock is up over 12% in the pre-market session following the report.
As for Pfizer, the company consistently assesses its business and portfolio, which helps it to focus on development activities like acquisitions. In 2022, Pfizer announced the acquisition of Arena, a clinical-stage company focusing on treating several immuno-inflammatory diseases. Further, Pfizer acquired GBT, a biopharmaceutical company, and Biohaven, a company that develops therapy for the treatment of migraine.
While the Seagen acquisition will bolster Pfizer’s product portfolio, the deal could face an antitrust review.
Whether Pfizer will acquire Seagen remains a wait-and-watch story. Let’s look at what analysts recommend for PFE stock.
What’s the Prediction for Pfizer Stock?
Pfizer, which generated over $100 billion in revenues in 2022, has received five Buy and nine Hold recommendations for a Moderate Buy consensus rating. Analysts’ average price target of $50.14 implies 20.1% upside potential for PFE stock.
