Pfizer buys Seagen for US$43B, boosts access to cancer drugs
Pfizer is spending about US$43 billion to succeed in deeper into new most cancers remedies that concentrate on tumor cells whereas sparing surrounding wholesome tissue.
The pharmaceutical large mentioned Monday it should pay US$229 in money for every share of Seagen Inc. Pfizer then plans to let the biotech drug developer “continue innovating,” besides with extra assets than it might have alone, Pfizer Chairman and CEO Albert Bourla advised analysts.
“We are not buying the golden eggs,” he mentioned. “We are acquiring the goose that is laying the golden eggs.”
Bothell, Washington-based Seagen Inc. makes a speciality of working with antibody-drug conjugate, or ADC, know-how. Its key merchandise use lab-made proteins known as monoclonal antibodies that search out most cancers cells to assist ship a cancer-killing drug whereas sparing surrounding tissue.
Cancer remedies are a precedence for Pfizer. They introduced in US$12 billion in income for the drugmaker final yr. But Pfizer has solely marketed a pair first-generation ADC remedies, a spokeswoman mentioned.
Seagen has 4 remedies available on the market. It additionally has a pipeline of medicine underneath improvement that features potential remedies for a type of lung most cancers and superior breast most cancers.
“We think this really changes dramatically the oncology presence of Pfizer, makes it one of a kind,” Bourla mentioned.
Seagen’s prime vendor, Adcetris, treats lymph system cancers. It introduced in US$839 million in gross sales final yr, a 19% improve over the earlier yr.
Seagen additionally has a take care of Pfizer’s Array BioPharma to develop, make and promote the breast and colorectal most cancers remedy Tukysa. It introduced in $353 million in gross sales for Seagen final yr.
The firm, which modified its identify from Seattle Genetics in 2020, noticed whole income develop about 25% final yr to just about $2 billion. Seagen additionally shaved its loss to US$610 million from $674 million in 2021.
The drug developer predicts about US$2.2 billion in gross sales for this yr.
Pfizer booked about US$100 billion in whole income final yr and has been flush with money because of gross sales of its COVID-19 vaccine and remedy, Comirnaty and Paxlovid.
Bourla mentioned earlier this yr that the corporate deliberate to make use of its “extraordinary firepower” to purchase merchandise that may ship US$25 billion in incremental income by 2030.
The deal introduced Monday and a few earlier acquisitions will assist Pfizer account for many of that. But Bourla emphasised on Monday that the corporate expects Seagen’s contributions to increase past the top of the last decade.
New York-based Pfizer Inc. has already spent US$11.6 billion on migraine remedy developer Biohaven Pharmaceutical. It additionally spent $5.4 billion on sickle cell illness remedy maker Global Blood Therapeutics and purchased Arena Pharmaceuticals for an additional $6.7 billion.
The drugmaker wants extra income sources partially as a result of it faces the expiration of patents defending medicine like its breast most cancers remedy Ibrance from cheaper competitors within the coming years.
Pfizer mentioned Monday it should pay for Seagen largely via US$31 billion in new, long-term debt.
Both firms’ boards have unanimously authorized the deal. But regulators nonetheless want to take a look at it, and Seagen shareholders must approve it.
The firms anticipate to finish the transaction in late 2023 or early 2024.
Shares of Pfizer rose 2% to US$40.26 after markets opened Monday, whereas Seagen’s inventory soared greater than 15% to just about $200. Broader indexes edged up barely.
