Pfizer is close to an agreement to buy Medivation for about $14 billion (€12.4 billion), people familiar with the situation said, the latest in a long run of blockbuster deals in the drug and biotechnology industries.
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The deal could be announced early this week, the FT said quoting those knowledgeable people, and would mean Pfizer has beat out rivals Sanofi, Celgene ($CELG), Merck ($MRK) and Gilead ($GILD)-although only Sanofi has officially confirmed its interest.
A $14 billion purchase of Medivation would be Pfizer’s biggest deal since buying Hospira for about $17 billion a year ago, and the company is a rare prize. In May, Pfizer Chief Executive Officer Ian Read said that he was giving more interest in late-stage assets since the company has now numerous early-stage drugs in development.
The acquisition comes at a time when Pfizer, whose oncology offerings include breast cancer drug Ibrance, is relying on cancer drugs and other new branded treatment to boost revenues.
Acquiring Medivation will strengthen Pfizer’s oncology franchise, which has lost ground in recent years to some Big Pharma competitors.
It would also have been the biggest pharmaceutical deal in history.
Acquiring Medivation meant that the opposing company would get the prostate cancer treatment known as Xtandi that’s approved for selling in the United States and other countries.
Medivation’s one drug on market already is called Xtandi, or enzalutamide, which the company developed with Japan’s Astellas.
But J&J is developing a new prostate-cancer drug that could pose a threat to Xtandi, according to analysts.
Medivation was put in play after French drug company Sanofi SA made an unsolicited proposal of $52.50 a share in cash, which the biotech rejected in April, saying the offer substantially undervalued the company.
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A bidding war resulted. If Pfizer’s offer wins, Medivation would fetch more than double the $6 billion it was valued earlier in the year.
