Pfizer to acquire Seagen for $43 billion to deepen reach in cancer treatment End-shutdown

Pfizer will spend $43 billion to buy Seagen and deepen its reach in cancer treatment.

The pharmaceutical giant said Monday it will pay $229 per share for Seagen.

Together, Pfizer and Seagen seek to accelerate the next generation of cancer breakthroughs and deliver new solutions to patients by combining the power of Seagen’s antibody-drug conjugate (ADC) technology with the scale and robustness of Seagen’s capabilities and the Pfizer experience,” said the Pfizer Chairman and CEO. said Dr. Albert Bourla in a statement.

Bothell, Wash.-based Seagen Inc. is a developer of biotech drugs. Its key products use monoclonal antibodies that bind to the surface of a tumor cell to deliver an anticancer agent without affecting surrounding healthy tissue.

Monoclonal antibodies are laboratory-made proteins that are administered primarily intravenously at an infusion center, according to the Cleveland Clinic.

Seagen’s best-selling product, Adcetris, treats cancers of the lymphatic system. It brought in $839 million in sales last year, an increase of 19 percent over the previous year.

In addition to Adcetris, Seagen also has an agreement with Pfizer’s Array BioPharma to develop, manufacture and sell the Tukysa breast and colorectal cancer treatment. It brought in $353 million in sales last year.

Seagen also saw sales grow 33 percent to $451 million last year for Padcev, which treats some types of urinary tract cancer, including the bladder. The drugmaker is developing and selling that treatment with Astellas Pharma Inc.

Seagen expects to generate approximately $2.2 billion in revenue this year, representing 12% year-over-year growth, from its four online drugs, royalties, and partnership and licensing agreements.

Pfizer believes that Seagen could contribute more than $10 billion in risk-adjusted revenue in 2030, with significant potential growth beyond 2030.

Seagen, which changed its name from Seattle Genetics in 2020, cut its loss to $610 million last year. That’s down from the $674 million in 2021. Total revenue rose about 25 percent last year to nearly $2 billion.

The company named former Novartis executive David Epstein as CEO in November. CEO and co-founder Clay Siegall stepped down last spring.

Cancer treatments are one of Pfizer’s core businesses. That drug pipeline includes the breast cancer treatment Ibrance, which generated nearly $1.3 billion in sales last year.

Pfizer posted around $100 billion in total revenue last year and has been flush with cash thanks to sales of its COVID-19 vaccine and treatment, Comirnaty and Paxlovid.

Chief Executive Officer Albert Bourla said earlier this year that the company planned to use its extraordinary firepower to buy products that will generate $25 billion in incremental revenue by 2030.

New York-based Pfizer Inc. has already spent $11.6 billion on migraine treatment developer Biohaven Pharmaceutical.

It also spent $5.4 billion on sickle cell disease treatment maker Global Blood Therapeutics and bought Arena Pharmaceuticals for another $6.7 billion.

Bourla said in January that Pfizer plans to launch 19 new products or new indications for existing products over the next year and a half.

The drugmaker needs more revenue streams in part because it faces expiring patents that protect drugs like Ibrance from cheaper competition for years to come.

The boards of both companies unanimously approved the deal. The companies hope to complete the transaction in late 2023 or early 2024. It still needs Seagen shareholder approval.

(Only the headline and image in this report may have been modified by Business Standard staff; all other content is auto-generated from a syndicated feed.)

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