Pfizer Inc is in advanced talks to acquire USA cancer drug company Medivation Inc for close to $14 billion, as it seeks to boost its oncology portfolio, people familiar with the matter said on Sunday.
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The New York drugmaker said Monday that the acquisition will stock its product portfolio with leading treatments for the most common cancers in men and women by adding Medivation’s pricey prostate cancer treatment Xtandi to a lineup that already includes the breast cancer drug Ibrance.
Pfizer said the acquisition would also add about 5 cents to earnings in the first full year after close and doesn’t expect the deal to impact its 2016 forecast.
“This transaction is another example of how we are effectively deploying our capital to generate attractive returns and create shareholder value”.
Pfizer also noted that Medivation is developing two other “promising” oncology drugs – talazoparib for breast cancer and pidilizumab for lymphoma.
The merger was announced on Monday, Aug. 22, and gives an impetus to Pfizer’s oncology-oriented ambitions. Shares of Medivation closed at $67.16 on Friday, and climbed to $80.58 in early US trading Monday.
In one of the most exciting biotech deals in recent memory, Pfizer Inc.is acquiring biopharmaceutical company Medivation Inc., which is synonymous with cancer treatment development.
In the past, Medivation has rejected Sanofi’s offer of $58 per share in cash and $3 per share in relation to the revenue generation of Talazoparib. The takeover would further Pfizer CEO Ian Read’s efforts to bolster what he refers to as the innovative side of the company’s business. The price is a significant premium over the unsolicited bid that Medivation received in April from the French drug company Sanofi.
Medivation shares were up 20 percent at $80.56 in premarket trade, just shy of the offer price of $81.50 per share in cash.
Xtandi is the star in Medivation’s portfolio with sales of US$330mln in the latest quarter and is key to the company’s target to grow annual sales this year by 50%.
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Pfizer to buy Medivation in $14 bln deal was posted in Business of TheNews International – https://www.thenews.com.pk on August 23, 2016 and was last updated on August 23, 2016.
