Seattle Genetics To Buy Cascadian Therapeutics; Sees Higher Q4 Revenues

(RTTNews) - Seattle Genetics, Inc. (SGEN) announced Wednesday that it has signed a definitive merger agreement to acquire Cascadian Therapeutics, Inc. (CASC). Under the deal terms, Seattle Genetics will pay $10 per share in cash, or approximately $614 million. In pre-market activity, Cascadian shares were gaining around 67.8 percent to $9.90.

Seattle Genetics separately reported preliminary fourth-quarter results, expecting total revenues between $128 million and $130 million. Total revenues increased from the comparable periods in 2016 primarily as a result of increased ADCETRIS net product sales.

ADCETRIS net product sales in the U.S. and Canada would be $82 million to $84 million, higher than last year, primarily due to an increase in sales volume and, to a lesser extent, price increases.

The increases in sales volumes in both periods were driven primarily by increased use of ADCETRIS across multiple lines of therapy in Hodgkin lymphoma and for the treatment of other malignancies.

In the deal with Cascadian, the per share price represents a 69 percent premium to the closing price of Cascadian Therapeutics' common stock on Tuesday, January 30, and a 139 percent premium to its 30-day volume weighted average stock price.

The transaction was unanimously approved by the Boards of Directors of both companies.

Seattle Genetics will commence a tender offer on or about February 8. The tender offer is subject to customary closing conditions. Following the offer, a unit of Seattle Genetics will merge with and into Cascadian Therapeutics.

The transaction is anticipated to close in the first quarter of 2018.