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GreekReporter.comBusinessPfizer Announces $43 Billion Deal for Cancer Drug Innovator Seagen

Pfizer Announces $43 Billion Deal for Cancer Drug Innovator Seagen

Pfizer Announces $43 Billion Deal for Cancer Drug Innovator Seagen. Credit: Donald Trung / Wikimedia Commons / CC BY-SA 4.0

Pharmaceutical giant Pfizer Inc. (PFE.N) has announced its intention to acquire Seagen Inc. (SGEN.O) in a $43 billion deal.

The acquisition is aimed at reinforcing Pfizer’s portfolio of targeted cancer therapies in the face of an expected decline in sales of COVID-19 products and generic competition for some of its top-selling drugs.

This acquisition marks Pfizer’s largest purchase to date, following a series of recent acquisitions made possible by the company’s once-in-a-lifetime cash windfall from its COVID-19 vaccine and treatment. Seagen’s acquisition will add four approved cancer therapies to Pfizer’s offerings, which collectively generated almost $2 billion in sales in 2022.

Seagen, headquartered in Washington, is a pioneer in the field of antibody-drug conjugates. These treatments act like “guided missiles,” targeting cancerous cells while sparing healthy ones, and have proved effective in the fight against cancer, according to Seagen’s official website.

“We can add value to what Seagen is bringing,” Bourla, CEO of Pfizer, said in an interview. “It’s more or less a situation like when mRNA was in our hands. With our scale, with our capabilities, this is the same here.”

Pfizer bids $229 in cash for each share

Pfizer has announced its plan to purchase Seagen for $229 per share in cash. Following the acquisition, Pfizer intends to provide additional resources to the biotech drug developer, enabling it to continue innovating while leveraging Pfizer’s expertise and support.

In a statement to analysts, Pfizer Chairman and CEO Albert Bourla clarified that the company’s goal is not to acquire the “golden eggs” but to obtain “the goose that is laying the golden eggs.”

Pfizer has identified cancer treatments as a top priority, generating $12 billion in revenue for the company last year. However, Pfizer currently offers only a few first-generation antibody-drug conjugate treatments.

The acquisition of Seagen will bolster Pfizer’s offerings in this important therapeutic area, said the company’s spokeswoman

Pfizer to use ‘extraordinary firepower’

In a statement this year, Pfizer Chairman and CEO Albert Bourla announced that the company would be utilizing its “extraordinary firepower” to acquire products that would generate $25 billion in incremental revenue by 2030.

The recently announced acquisition of Seagen, along with previous acquisitions, will play a significant role in achieving this goal. However, Bourla emphasized on Monday that the company anticipates that Seagen’s contributions will extend beyond the end of the decade.

Pfizer, headquartered in New York, has already invested heavily in acquiring companies, spending $11.6 billion on Biohaven Pharmaceutical, a migraine treatment developer, as per Pfizer’s press release.

In addition, it spent $5.4 billion on Global Blood Therapeutics, a sickle cell disease treatment maker, and purchased Arena Pharmaceuticals for $6.7 billion.

The company is seeking to diversify its revenue streams as it prepares for the expiration of patents protecting key drugs, such as its breast cancer treatment Ibrance, from cheaper competitors in the years ahead.

The acquisition of Seagen and other biotech companies will help Pfizer to maintain its position as a leading innovator in the pharmaceutical industry.

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