Pharmaceutical company Pfizer has announced a major acquisition with a $43 billion deal to purchase biotech firm Seagen. The move will enable Pfizer to expand its range of cancer treatments with Seagen’s innovative targeted therapies.
The acquisition comes on the back of Pfizer’s recent financial success with its COVID-19 vaccine and pill.
Under the terms of the deal, Pfizer will pay $229 per share of Seagen in cash. Seagen’s four approved cancer therapies generated nearly $2 billion in combined sales in 2022.
Pfizer CEO Albert Bourla has stated that the acquisition will give Seagen more resources to continue innovating in the field of antibody drug conjugate (ADC) technology. This involves using lab-made proteins called monoclonal antibodies to deliver cancer-killing drugs while sparing surrounding tissue.
Cancer treatments are a top priority for Pfizer, generating $12 billion in revenue for the company last year.
Seagen has four treatments on the market, including Adcetris, which treats lymph system cancers and had $839 million in sales last year. The company also has a pipeline of drugs in development, including potential treatments for lung and advanced breast cancer.
The acquisition of Seagen will significantly enhance Pfizer’s oncology presence and enable the company to account for most of its planned $25 billion in incremental revenue by 2030. However, Pfizer expects Seagen’s contributions to extend beyond the end of the decade.
Pfizer has previously made other major acquisitions, including Biohaven Pharmaceutical, Global Blood Therapeutics, and Arena Pharmaceuticals, in a bid to secure new revenue sources ahead of the expiration of patents on some of its drugs.
The deal is subject to regulatory approval, and Seagen shareholders will also need to approve it. The companies expect to complete the transaction in late 2023 or early 2024. After the announcement of the acquisition, Pfizer’s shares rose 2% to $40.26 while Seagen’s stock soared over 15% to nearly $200.