Pfizer spends $43 billion to acquire Siegen to deepen its reach in cancer care.
The pharmaceutical giant said Monday it will pay $229 per Seagen share.
“Pfizer and Siegen are collaborating to accelerate the next generation of cancer breakthroughs by combining the power of Siegen’s antibody drug conjugate (ADC) technology with the scale and strength of Pfizer’s capabilities and expertise. We aim to bring new solutions to patients,” CEO Dr. Albert Bourla said in a statement.
Seagen Inc., based in Bothell, Washington, is a biopharmaceutical development company. Its lead product uses monoclonal antibodies that bind to the surface of tumor cells to deliver cancer-killing drugs while sparing surrounding healthy tissue.
According to the Cleveland Clinic, monoclonal antibodies are lab-made proteins that are primarily delivered by IV at infusion centers.
Seagen’s top-selling Adcetris treats cancers of the lymphatic system. Last year, he had $839 million in sales, up 19% from the previous year.
Separate from Adcetris, Seagen has an agreement with Pfizer’s Array BioPharma to develop, manufacture and market Tukysa, a treatment for breast and colorectal cancer. Last year’s sales he was $353 million.
Seagen also confirmed that sales of Padcev, which treats cancers in parts of the urinary tract, including the bladder, rose 33% last year to $451 million. The pharmaceutical company is jointly developing and marketing the 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 in-line drugs, royalties, collaborations and license agreements.
Pfizer believes Seagen will contribute more than $10 billion to risk-adjusted revenue in 2030, with the potential to grow significantly beyond 2030.
Seagen, which changed its name from Seattle Genetics in 2020, trimmed its losses to $610 million last year. This is down from his $674 million in 2021. Total revenue last year was up about 25% to nearly $2 billion.
The company appointed former Novartis executive David Epstein as CEO in November. His longtime CEO and co-founder, Clay Siegall, stepped down last spring.
Cancer care is one of Pfizer’s core businesses. Its drug portfolio includes breast cancer drug Ibrance, which had sales of approximately $1.3 billion last year.
Pfizer posted about $100 billion in total revenue last year and is cash-rich thanks to sales of its COVID-19 vaccine and treatments Comirnaty and Paxlovid.
CEO Albert Bourla said earlier this year that the company plans to use its “extraordinary firepower” to buy products that will bring in $25 billion in incremental revenue by 2030.
New York-based Pfizer has already spent $11.6 billion on migraine treatment developer Biohaven Pharmaceuticals.
It also spent $5.4 billion on sickle cell drug maker Global Blood Therapeutics and acquired 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 18 months.
Pharmaceutical companies need more revenue streams as they face expiring patents protecting drugs like Ibrance from cheaper competition in the coming years.
The boards of directors of both companies have unanimously approved the transaction. The companies expect to complete the transaction in late 2023 or early 2024. It still requires approval from Seagen’s shareholders.
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https://wgnradio.com/news/business-news/pfizer-will-spend-43-billion-to-acquire-seagen/ Pfizer will spend $43 billion to acquire Seagen. WGN Radio 720