By Sam Boughedda
Raymond James analysts told investors in a note Thursday that Seagen Inc (NASDAQ:SGEN) announcing David Epstein as their new Chief Executive Officer and member of the board means it likely confirms that Seagen will remain a stand-alone entity.
Seagen shares are down more than 5% in early Thursday trading.
The analysts were referring to speculation surrounding a potential merger between Seagen and Merck (NYSE:MRK).
"David Epstein's background is well suited to the company's needs, as a global oncology presence, and leader in the development and commercialization of antibody drug conjugates," the analysts wrote. "We think this likely confirms that Seagen will remain a stand-alone entity after speculation surrounding a merger following the resignation of founder and CEO Clay Siegall earlier in the year."
Even so, they added that they see the CEO hire as a positive step toward determining the long-term outlook.
Elsewhere, BMO Capital Markets analysts told investors in a note that they are "net positive" on the move given Mr. Epstein's breadth of pharma and oncology experience, including his prior role as CEO of Novartis Pharmaceuticals and executive partner at Flagship Pioneering.
"Dr. Dansey, who served as the interim CEO, will be appointed as president of R&D and will continue to serve as CMO. We remain Outperform on SGEN's growth outlook and strong fundamentals," the analysts added.