USA revenues from Xtandi are split by Medivation with partner Astellas Pharma Inc., of Tokyo.
Advertisement
The offer represents a 55-percent premium to an initial bid made by French firm Sanofi in April, which pushed the San Francisco-based Medivation to put itself up for sale.
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. Post the announcement, the shares of Medivation – which closed at $67.16 on Aug. 19 – rocketed to $80.58 in early trading on Monday, Aug. 22, a jump of almost 20 percent. Directors from both Pfizer and Medivation unanimously approved the deal, which is expected to finalize at the end of 2016. Talazoparib, now in a phase 3 study for the treatment of BRCA-mutated breast cancer, has the potential to be a highly potent PARP inhibitor and could be efficacious across several additional tumours. Xtandi generated global sales of about $2.2 billion in the last four quarters, as recorded by Medivation’s partner, Astellas Pharma Inc.
One of Pfizer’s most well-known drugs is the anti-impotency product Viagra.
In this Monday, Nov. 23, 2015, file photo, a man enters Pfizer’s world headquarters, in NY. In 2008, Pfizer agreed to pay $225 million up front plus $500 million in potential milestone payments in to co-develop and market Dimebon, Medivation’s candidate for Alzheimer’s and Huntington’s diseases.
Xtandi remains the star for Medivation, and Brean Capital analyst Jonathan Aschoff predicted Pfizer “will further expand the commercial scale by not just adding more bodies to the sales force, but also driving urologists’ adoption [thanks to] its deep relationship with these doctors”.
Xtandi treatments cost more than $88 a pill, giving it a list price of $129,000 for a year’s worth of treatment.
In the meantime, the company has focused on a series of partnerships and deals showing the company can grow as a whole.
Pfizer shares were marginally down at $34.80 in premarket trading. The company already has a breast-cancer treatment to its share, a new add-on treatment could mean boost in the company’s market for oncology treatments.
Advertisement
Shares of Medivation Inc. soared almost 20 percent, or $13.33, to $80.49 early Monday, while Pfizer climbed 22 cents to $35.20.
