Drugmaker Merck & Co is reportedly in advanced talks to buy cancer-focused biotech company Seagen Inc.
The deal could be worth roughly $40 billion or more, according to the Wall Street Journal.
A deal would help Merck add to its cancer drug portfolio.
The immunotherapy drug Keytruda is Merck's top-selling product with $17.2 billion in sales last year.
Seagen's products include Adcetris, which had $1.4 billion in sales last year.
The companies are discussing a price above $200 a share for Seagen.
Shares of Seagen, are up more than 2% in the premarket at $180 on Thursday. Merck shares were at $93.
There's no guarantee that the two sides will reach a deal, according to the Journal.
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Any proposed deal is expected to draw a close look from antitrust officials.
Merck and Seagen are seeking to seal a deal on or before the announcement of Merck's second fiscal-quarter earnings set for July 28, according to the Journal.
Seagen declined to comment on the report.
Merck did not immediately respond to request for comment.