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Be the first with the news that moves the market- Pharmaceutical giant Pfizer said Monday it its spending $43 billion to acquire a cancer-focused biotech company
- Seagen is focused primarily developing and commercializing an empowered monoclonal antibody-based therapies for the treatment of cancer.
- Once finalized, the deal is expected to contribute more than $10 billion to Pfizer’s risk-adjusted revenues in 2030
- Pfizer Inc. (NYSE:PFE) is up 2.08 percent, trading at US$40.21 at 1:40 p.m. ET
Pharmaceutical giant Pfizer said Monday it its spending $43 billion to acquire a cancer-focused biotech company.
New York-based Pfizer is finalizing the details to acquire biotech firm Seagen Inc. in the cash-and-stock deal
Seagen, based in Washington state, is primarily focused on developing and commercializing empowered monoclonal antibody-based therapies for the treatment of cancer.
Once finalized, the acquisition is expected to expand Pfizer’s footprint in the cancer treatment and oncology market.
The deal is expected to contribute more than $10 billion to Pfizer’s risk-adjusted revenues in 2030. Pfizer then expects significant growth beyond that point.
Pfizer is paying $229 million in cash, with the remainder of the amount due in stock.
Seagen expects to generate approximately $2.2 billion of revenue this year, which, if achieved, would represent a 12-percent year-over-year growth.
The 25-year-old company’s main focus is its antibody-drug conjugate (ADC) technology, with four of the twelve total FDA-approved and marketed ADCs using its technology industry-wide.
ADCs emerging as a new tool across a broad range of cancers designed to “preferentially kill cancer cells and limit off-target toxicities.”
Seagen also has a deep pipeline of therapeutic treatments in development, including eleven new molecular entities.
“Pfizer is deploying its financial resources to advance the battle against cancer, a leading cause of death worldwide with a significant impact on public health,” said Pfizer Chairman and Chief Executive Officer Dr. Albert Bourla.
“Together, Pfizer and Seagen seek to accelerate the next generation of cancer breakthroughs and bring new solutions to patients by combining the power of Seagen’s antibody-drug conjugate technology with the scale and strength of Pfizer’s capabilities and expertise. Oncology continues to be the largest growth driver in global medicine, and this acquisition will enhance Pfizer’s position in this important space and contribute meaningfully to the achievement of Pfizer’s near- and long-term financial goals.”
Pfizer Inc. (NYSE:PFE) is up 2.08 percent, trading at US$40.21 at 1:40 p.m. ET.
