You can forget about Merck’s attempt to acquire formidable Seattle biotech Seagen—at least for the next several days.
The potential deal is still very much alive but will not happen until after the companies present their quarterly earnings, says The Wall Street Journal. Both are expected to report on July 28.
Complicating the valuation for Seagen, sources told the outlet, is a pending data readout for bladder cancer treatment Padcev.
Another factor cited by the WSJ’s sources as a reason for the delay—ongoing patent litigation between Seagen and Daiichi Sankyo of Japan—was partially advanced Monday with a Texas court ruling in favor of Seagen.
Speculation has the much-anticipated merger coming in at more than $40 billion, which would make it the most expensive pharma deal since 2020. But the enforcement police at the Federal Trade Commission could have a hand in influencing the scope of the acquisition.
Results of a trial of Padcev concern both companies on another level. While the drug currently is approved for second-line bladder cancer, Seagen is investigating it as a first-line treatment, an indication which would add billions to its sales potential.
Complicating matters further is that Padcev is being evaluated as both a solo agent and in combination with Merck’s Keytruda. An approval as a combo treatment would extend Keytruda’s patent protection in the indication beyond 2027.
As for the Daiichi Sankyo patent decision, it involves Daiichi’s breast cancer drug Enhertu. In April, the court granted a $41.8 million award to Seagen, ruling that its patents were infringed. Monday, Daiichi’s appeal was dealt a blow as a judge denied the company’s attempt to prove the patent was “unenforceable.”
Much remains unresolved, however, as Daiichi’s appeal remains alive. If that appeal is unsuccessful, Seagen will pursue royalties and possible milestone payments through an arbitration procedure.