Pfizer will spend $43 billion to acquire Seagen

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

The pharma giant said Monday it would pay $229 per Seagen share.

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

Seagen Inc., based in Bothell, Washington, is a biotechnology drug developer. Its main products use monoclonal antibodies that bind to the surface of a tumor cell to deliver a cancer-killing agent while sparing surrounding healthy tissue.

According to the Cleveland Clinic, monoclonal antibodies are lab-made proteins that are primarily given intravenously at an IV center.

Seagen’s best-selling product, Adcetris, treats cancers of the lymphatic system. It brought in $839 million in revenue last year, up 19% year over year.

In addition to Adcetris, Seagen also has a deal with Pfizer’s Array BioPharma to develop, manufacture and sell breast and colon cancer drug Tukysa. It brought in $353 million in sales last year.

Seagen also saw sales grow 33% last year to $451 million for Padcev, which treats some cancers of the urinary tract, including the bladder. The drugmaker develops and sells this treatment with Astellas Pharma Inc.

Seagen expects to generate approximately $2.2 billion in revenue from its four inline drugs, royalties, and collaboration and licensing agreements this year, up 12% year over year.

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

Seagen, which changed its name from Seattle Genetics in 2020, trimmed its loss to $610 million last year. That’s down from $674 million in 2021. Total sales grew about 25% last year to nearly $2 billion.

The company appointed former Novartis executive David Epstein as CEO in November. Longtime CEO and co-founder Clay Siegall resigned last spring.

Cancer treatments are one of Pfizer’s main businesses. That drug portfolio includes breast cancer drug Ibrance, which brought in nearly $1.3 billion in sales last year.

Pfizer reported about $100 billion in total revenue last year and was cashless thanks to sales of its COVID-19 vaccine and treatment, 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 additional sales by 2030.

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

The company also spent $5.4 billion on sickle cell disease treatment maker Global Blood Therapeutics and bought Arena Pharmaceuticals for an additional $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 the expiration of patents that protect drugs like Ibrance from cheap competition in the coming years.

The boards of directors of both companies unanimously approved the deal. The companies expect to close the transaction in late 2023 or early 2024. It still has to be approved by Seagen shareholders.

Copyright 2023 The Associated Press. All rights reserved. This material may not be published, broadcast, transcribed or redistributed without permission. Pfizer will spend $43 billion to acquire Seagen

Sarah Y. Kim

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