Washington-headquartered Seagen expects to make around $2.2bn in revenue this year, while Pfizer cements its position in cancer medication.
Pharmaceutical giant Pfizer is set to acquire cancer-focused biotechnology company Seagen for $43bn, making it the biggest acquisition so far this year.
According to a statement release by Pfizer today (13 March), it will pay Seagen shareholders $229 per share in cash, which is about a third more than the biotech’s closing price on Friday.
Seagen is known for discovering and developing medications to treat cancer, and the acquisition further consolidates New York-based Pfizer’s position in the oncology space. Publicly listed on Nasdaq, Seagen is headquartered in the US state of Washington and was founded in 1997.
Dr Albert Bourla, chair and chief executive of Pfizer, said that the pharma giant, which has significant operations in Ireland, is investing heavily to “advance the battle against cancer” because of its “significant impact” on public health globally.
“Together, Pfizer and Seagen seek to accelerate the next generation of cancer breakthroughs and bring new solutions to patients by combining the power of Seagen’s antibody-drug conjugate (ADC) technology with the scale and strength of Pfizer’s capabilities and expertise,” said Bourla.
“Oncology continues to be the largest growth driver in global medicine and this acquisition will enhance Pfizer’s position in this important space and contribute meaningfully to the achievement of Pfizer’s near-and long-term financial goals.”
The deal is expected to close by early next year. Seagen hopes to generate approximately $2.2bn of revenue this year, representing a 12pc year-on-year growth. In the long term, Pfizer estimates Seagen could contribute more than $10bn in revenues in 2030, with further growth beyond.
Seagen chief David Epstein believes the merger with Pfizer is “the right next step” for the drugmaker to further its strategy.
“This compelling transaction will deliver significant and immediate value to our stockholders and provide new opportunities for our colleagues as part of a larger science-driven, patient-centric, global company.”
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