Pfizer Strikes $43 Billion Deal with Seagen to Expand Cancer Treatments Portfolio
Pfizer Inc, the renowned drugmaker, has announced a massive $43 billion deal with Seagen Inc to enhance its cancer treatments portfolio. The deal comes as Pfizer prepares for a significant decline in COVID-19 product sales and the loss of exclusivity for some of its top-selling drugs.
Pfizer’s biggest acquisition to date, this deal will bring four approved cancer therapies under its umbrella, with combined sales of nearly $2 billion expected in 2022. Under the agreement, Pfizer will pay $229 in cash per Seagen share, a 32.7% premium to Friday’s closing price. Seagen’s shares rose to $207 before the bell on Monday.
With patent expirations for top drugs and a decline in demand for COVID-19 products, Pfizer is looking for ways to mitigate the anticipated $17 billion drop in revenue by 2030. The drugmaker expects to earn more than $10 billion in “risk-adjusted” sales from Seagen in 2030.
Seagen, based in Washington, is a pioneer of antibody-drug conjugates (ADCs), which work like “guided missiles” designed for a targeted destructive effect and spare healthy cells. The deal is expected to be completed in late 2023 or early 2024.
Pfizer’s portfolio of oncology therapies includes 24 approved drugs, such as the breast cancer treatment Ibrance. The acquisition of Seagen is a strategic move by Pfizer to expand its cancer treatment options and stay ahead of the competition.
According to Wells Fargo analyst Mohit Bansal, the deal is unlikely to face major antitrust challenges as the companies do not have major overlapping products. However, the size of the acquisition could still draw some scrutiny.
Last year, Pfizer’s rival Merck & Co Inc and Seagen were in advanced deal talks, but the deal reportedly collapsed over fears of tough antitrust scrutiny.
Overall, Pfizer’s acquisition of Seagen is expected to be a game-changer for the company, as it diversifies its portfolio and positions itself for long-term growth.
About Pufizer:
Pfizer Ltd is a pharmaceutical company that manufactures, markets, trades, and exports pharmaceutical products. Its products are manufactured in its own facility as well as through independent contract and third-party manufacturers located throughout India. The company primarily sells its products through independent distributors in India. With its operations, Pfizer Ltd has become the third-largest multinational pharmaceutical company in India.
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