(Adds details, shares) Aug 22 (Reuters) – Pfizer Inc said on Monday it would buy USA cancer drug company Medivation Inc in a deal valued at about $14 billion to boost its oncology portfolio. Merck, Gilead Sciences and Amgen were also reportedly considering a bid. Pfizer’s offer is nearly 33% higher than Sanofi’s offer of $11 billion.
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Albert Bourla, Group President, Pfizer Innovative Health, said, “IBRANCE and XTANDI are anchor brands in breast and prostate cancer respectively, giving Pfizer leadership in two hormone-driven cancers”. This drug, talazoparib, could potentially be one of the most potent medicines in the PARP class according to analysts. Top-line results from Medivation’s first talazoparib registrational study, EMBRACA, in germline-BRCA mutated breast cancer are expected in the first half of 2017.
Pfizer Inc has agreed to buy Medivation Inc which is a biopharmaceutical company focused on developing and commercializing in the treatment for cancer. Pfizer has 2,100 employees in MI, mostly in Kalamazoo County at its Portage manufacturing complex, according to the company’s website.
Following the takeover talks, Medivation’s share price have appreciated by two folds in the past six months. In April, Sanofi sought to acquire Medivation for $52.50 per share, representing an all-cash transaction valued at approximately $9.3 billion. The company’s revenue was up 17.4% compared to the same quarter a year ago.
The acquisition will allow Pfizer to expand its oncology portfolio.
The deal makes Pfizer (PFE) the victor in a bidding war that started when French drug firm Sanofi offered about $9.3 billion for Medivation in April.
Medivation Inc closed down -0.03 points or -0.04% at $67.16 with 14,25,679 shares getting traded on Friday. Though Xtandi is a blockbuster, Pfizer will split United States sales with Tokyo-based Astellas Pharma, which partnered with Medivation on the drug. Xtandi, which Astellas Pharma Inc. also sells, could be one of the top-selling cancer drugs by 2020, according to EvaluateSHYPharma.
Pfizer Inc. (NYSE:PFE) and Medivation, Inc.
The New York drugmaker said Monday that it will pay $81.50 per Medivation share.
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The acquisition, slated to close in the third or fourth quarter, is expected to be immediately accretive to Pfizer’s earnings – earnings is expected to be boosted by about 5 cents in the first full year after close with additional accretion and growth expected thereafter. CEO David Hung says he chose to found the company after watching a 28-year-old breast-cancer patient die during his oncology fellowship.
