Pfizer has agreed to buy biotech firm Seagen Inc. for $43B.
The pharmaceutical giant will pay $229 a share in cash, a ~33% premium on Seagen’s Friday close price. The deal, which includes debt, is expected to close later this year or early next year. The acquisition is expected to face antitrust regulatory scrutiny.
Seagen makes cancer-targeting drugs; the firm helped pioneer a class of medications called antibody drug conjugates (ADCs), which attack tumors.
- According to drug-market-research firm Evaluate, this class of drugs could bring in $31B in sales in 2028.
- The global cancer drugs market is estimated at $375B.
- Pfizer has been looking to expand its offerings as some of its top-selling drugs, like the breast-cancer drug Ibrance, will lose their patent protection by 2030.
- Following news of the deal, Pfizer shares rose nearly 3% on Monday morning before settling and closing up ~1.2% for the day.
- Seagen closed at $197.65, up ~14.5% for the day.
French drugmaker Sanofi has agreed to buy U.S. biopharmaceutical company Prevention Bio for $2.9B.
- The deal is expected to close in Q2 2023.
