Market Valuation: $25 Billion
Ironbound Buy-Side Valuation: $23 Billion
Ironbound Assessment: Seattle based Seagen Inc, founded in 1997, is a leading American biotechnology company that develops and commercializes targeted cancer therapies. Our buyout valuation fairly prices the company between $15 to $32 Billion, or approximately 10-to 20-times sales. The lofty valuation is 90% Goodwill for the rights to develop and produce TUKYSA® - a lifesaving treatment for metastatic HER-2 positive breast cancers. TUKYSA® promises a phenomenal growth opportunity; upon FDA approval in 2020 initial sales started at $120 million and skyrocketed the following year to $334 million. Merck shareholders are extremely optimistic outbidding by 25 percent our highest estimated valuation range. The $40 Billion acquisition would strategically entrench Merck further into the oncology space alongside their blockbuster Keytruda®. Indeed, Merck has greater scale capabilities to commercialize the acquisition and achieve a profitable return on investment faster than Seagen could on their own.
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