Why Seagen Stock Is Soaring Today
Shares of Seagen (NASDAQ: SGEN) are soaring today, up 16.4% as of 11:14 a.m. ET. The big gain came after Pfizer (NYSE: PFE) announced it plans to buy the biotech for around $43 billion.
Pfizer plans to acquire Seagen for $229 in cash per share. This amount reflects a premium of nearly 33% above Seagen's closing price on Friday, March 10, 2023. Rumors had been swirling for several weeks that Pfizer was in discussions to acquire the company. The biotech stock didn't jump even close to 33% today, though, indicating that investors were already betting that the acquisition rumors would pan out.
Investors also seem to think Pfizer is making a smart move. The big drugmaker's stock was up 2% as of 11:14 a.m. ET, well above the S&P 500's move higher. Shareholders don't appear to be concerned that Pfizer intends to fund the acquisition in large part by taking on $31 billion in new long-term debt.
Source Fool.com
