BRIEF—Rumors galore on M&A targets

Two sets of M&A rumors emerged on Friday, neither of which has been denied nor confirmed over the weekend.

First, US pharma giant Merck & Co is evaluating a potential buyout of embattled Seattle, USA-based biotech Seagen, according to a report from the Wall Street Journal on Friday morning, and pushing the firm’s shares 15.6% higher to $168.54 by close of trading and giving Seagen a market capitalization of around $30.5 billion.

The companies already have research collaborations and may end up signing a new marketing agreement instead, the WSJ noted, adding that other unnamed companies were also keeping an eye on Seagen as a target for a takeover.

The rumors come after the biotech’s former chief executive Clay Siegall stepped down from the company - following allegations of domestic violence that surfaced last month.

AstraZeneca said to be eyeing Mereo BioPharma

Also, after a massive surge in Mereo BioPharma’s shares – which rose 103% to $1.43, there was speculation that Britain’s AstraZeneca was weighing up a bid for the company.

Mereo BioPharma is a London-based clinical-stage biopharma focused on the development of therapies for the treatment of cancer and rare diseases.

Recently, one of the company's largest investors since December 2021, Rubric Capital Management (14% stake), wrote a  letter to the board urging it to explore strategic alternatives, and suggesting Mereo stock could be worth $4 per share.