By Scott Kanowsky and Senad Karaahmetovic
Investing.com -- U.S. drugmaking giant Pfizer Inc. (NYSE:PFE) is in early-stage talks to acquire biotech Seagen Inc. (NASDAQ:SGEN) in a deal that may potentially be worth more than $30 billion, according to the Wall Street Journal.
In a report citing people familiar with the negotiations, the paper said there is no guarantee that the acquisition will eventually happen, adding that regulators would likely need to review and sign off on any possible transaction due to antitrust concerns.
Seagen currently has a market capitalization of $30.14B and is expected to be worth a premium to that figure, the WSJ said.
Pfizer rival Merck (NYSE:MRK) was in advanced talks with Seagen over an acquisition worth over $40B last year, but both sides were unable to reach a formal deal. The WSJ reported that Pfizer was also exploring a purchase at the time.
U.S.-based Seagen has helped develop a cancer treatment that targets tumors with toxic agents. By buying the company, Pfizer could expand its offering of cancer medicines and counter an anticipated $17B hit from patent expirations in 2030.
According to Reuters, Pfizer declined to comment and Seagen was not immediately available for comment.