SVB says Pfizer could create value for holders with Seagen bid up to $253

Following the recent report by The Wall Street Journal that Seagen (SGEN) has become a potential acquisition target for Pfizer (PFE), SVB Securities said the firm is not commenting on the probability that Pfizer could acquire Seagen, but it performed a pro forma analysis of the financial impact from such a potential acquisition. In an analysis where the firm assumes a potential buyout of Seagen at $200 per share funded half in cash and half with debt, the firm thinks such a deal would dilute Pfizer EPS by 5% in 2023, 2% in 2024 and expects that the acquisition would be accretive to earnings from 2025 onward. SVB’s analysis suggests that a possible deal could create value for Pfizer equity holders with bid pricing up to $253 per Seagen share and it thinks a deal could add $8B-$10B in 2030 revenue, which it says would address "a material percentage" of Pfizer’s remaining $15B target. SVB has Market Perform ratings on both Pfizer and Seagen.