Pfizer sees second request as likely in FTC's review of Seagen deal - analyst
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Pfizer (NYSE:PFE) believes it's likely that that the Federal Trade Commission will ask for a second request regarding its planned purchase of Seagen (NASDAQ:SGEN), according to a Goldman analyst who recently spoke to the Pfizer chief financial officer. Seagenfell 0.9%.
"A notable positive in our view, is that PFE highlighted that no red flags have cropped up to-date indicating that the FTC would oppose the transaction, though they expect that a second request is likely," Goldman Sachs analyst Chris Shibutani wrote in a note on Thursday.
Earlier this month, Pfizer (PFE) agreed to pull and refile its merger notification with the FTC over its planned $43 billion purchase of cancer drug maker Seagen (SGEN). A pull and refile resets the 30-day clock for the FTC to review the transaction.
Pfizer (PFE) remains confident that it will be able to close the Seagen (SGEN) deal by year-end 2023 or early next year, according to the Goldman analyst.
The CFO also said there is "minimal" read-across from the FTC's decision to challenge Amgen's (AMGN) planned purchase of Horizon Therapeutics (HZNP), noting that Pfizer believes considerations relating to "competition dynamics" in oncology are different than in rare diseases.
"Specifically, they view the potential for blocking competition as limited in oncology," Shibutani added. 
While the $229 per share deal for Seagen (SGEN), announced in March, didn't initially appear to raise antitrust concerns, M&A investors have been worried since the FTC unexpectedly sued last month to block Amgen's (AMGN) planned $27 billion purchase of Horizon Therapeutics (HZNP). That case will be heard in an Illinois federal court in September.
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