As the dust settles on the eye-watering $14 billion buyout from Pfizer for the one-marketed-drug biotech Medivation, other mid-cap companies are now sitting pretty and increasingly hopeful they will see suitors lining up to also bet big on biotech.
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Earlier in April this year, Sanofi, the drug maker from France, had also offered to buy Medivation for $9 billion.
Moreover, Medivation’s Talazoparib drug for the treatment of breast cancer would also reinforce Pfizer’s leadership in fighting breast cancer, said Mr. Arfaei.
Pfizer executives said that the acquisition would help Pfizer accelerate its revenue growth and bring strategic growth to its cancer business.
Medivation shares were up 20 percent at $80.43 in afternoon trading, just shy of the offer price of $81.50 per share. Medivation Inc makes up approx 0.02% of Credit Agricole S A’s portfolio.Torray reduced its stake in MDVN by selling 417,963 shares or 41.56% in the most recent quarter. The deal values Medivation at 17.9 times its revenue, versus a 12.8 times average for deals in the sector in the last eight years, according to a research note by BMO Capital Markets.
Today, Pfizer (PFE – Analyst Report) has announced that it will be acquiring Medivation Inc.
The Pfizer-Medivation deal is much smaller than Pfizer’s proposed, $160-billion combination with Ireland’s Allergan, a plan the drugmakers scrapped after the Treasury Department issued new rules this spring aimed specially at blocking that deal.
The purchase of Medivation, if approved by regulators, would be Pfizer’s biggest buy since it bought the medical device company Hospira past year for $17 billion, a report by AFP stated.
Talazoparib is a type of drug called a PARP inhibitor, which interferes with the fix of defective DNA. Pfizer expects to complete the deal in the third or fourth quarter of this year.
Still, Read said in a conference call with analysts Monday that Pfizer’s valuation of Medivation was based largely on the prospects for Xtandi, which it hopes can be used earlier in the course of prostate cancer treatment than it is now.
The company’s portfolio includes Xtandi (enzalutamide) capsules that are indicated to treat metastatic castration-resistant prostate cancer by blocking multiple steps in the androgen receptor signaling pathway within the tumor cell.
Pfizer said in a call Monday that the deal wouldn’t affect the company’s timeline to decide whether or not to split into two separate companies, something Pfizer’s been talking about doing for years.
Pfizer has been seeking to expand its lineup of such oncology treatments.
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Reuters had reported that Pfizer, Merck & Co Inc, Celgene Corp and Gilead Sciences Inc had submitted expressions of interest to acquire Medivation.
