On Monday, Pfizer announced that it had agreed to buy Seagen for $43 billion. The acquisition is expected to bolster Pfizer’s oncology portfolio and expand its reach past the Covid-19 market and into the cancer treatment market.
According to the deal, Pfizer will acquire all outstanding shares of Seagen for $229 per share, a 32.7% premium to Friday’s closing price.
Seagen is expected to contribute more than $10 billion in risk-adjusted revenues by 2030.
“Pfizer is deploying its financial resources to advance the battle against cancer, a leading cause of death worldwide with a significant impact on public health,” said Dr. Albert Bourla, Pfizer Chairman and Chief Executive Officer.
“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. 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.”
Pfizer’s portfolio of oncology therapies includes 24 approved drugs, including breast cancer treatment Ibrance.
Dr. Clay Siegall, Seagen’s CEO, added, “We are excited to join forces with Pfizer to accelerate the development and commercialization of our cancer therapies. This transaction represents a significant milestone for Seagen and our shareholders, and we look forward to the opportunities ahead.”
The companies expect to complete the deal in late 2023 or early 2024. Question is, would this hybrid of major pharmaceutical and biotechnology companies gain the average American’s trust, or would curiosity kill this cat, too?
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