Pfizer announced a ~$43B deal to buy cancer drugmaker Seagen on Monday.
Seagen has four approved cancer therapies that generated nearly $2B in sales in 2022.
- The deal will be the largest acquisition for Pfizer since it paid $67B for Wyeth in 2009.
- Pfizer will pay $229 per share for the publicly-traded Seagen, offering a 32.7% premium on Friday's closing price.
- The
price is 42% higher than Seagen's closing price on Feb. 24, the day
before the Wall Street Journal first reported on the possible
acquisition.
- Pfizer expects to generate $10B+ in "risk-adjusted" sales from Seagen by 2030.
- Seagen is a pioneer in developing antibody-drug conjugates (ADCs), which are seen as a more targeted and less destructive way of treating cancer than radiation therapy.
- Pfizer
expects to lose $17B in revenue by 2030 due to expiring patents for
major drugs and declining demand for COVID-19 vaccines and antivirals.
- Merck,
a major competitor, was interested in acquiring Seagen last year. The
possible acquisition fell apart due to concerns over anti-trust
regulators blocking the deal and difficulties in agreeing on a price.
