Pfizer’s $43 bn Seagen buy to deepen cancer treatment
Pfizer recorded about $100 billion in total revenue last year and has been flush with cash thanks to sales of its COVID-19 vaccine and treatment, Comirnaty and Paxlovid
WASHINGTON: Pfizer will spend $43 billion to buy Seagen and deepen its reach into treating cancer.
The pharmaceutical giant said on Monday it will pay $229 per Seagen share.
Together, Pfizer and Seagen seek 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,” Pfizer chairman-CEO Albert Bourla said in a statement.
Bothell, Washington-based Seagen Inc is a biotech drug developer. Its key products use monoclonal antibodies that bind to the surface of a tumour cell to deliver a cancer-killing agent while sparing surrounding healthy tissue.
Monoclonal antibodies are lab-made proteins delivered mostly by IV at an infusion centre, as per the Cleveland Clinic.
Seagen’s top seller, Adcetris, treats lymph system cancers. It brought in $839 million in sales last year, a 19 per cent increase over the previous year.
Aside from Adcetris, Seagen also has a deal with Pfizer’s Array BioPharma to develop, make and sell the breast and colorectal cancer treatment Tukysa. It brought in $353 million in sales last year.
Cancer treatments are one of Pfizer’s main businesses. That portfolio of drugs includes the breast cancer treatment Ibrance, which brought in nearly $1.3 billion in sales last year.
Pfizer recorded about $100 billion in total revenue last year and has been flush with cash thanks to sales of its COVID-19 vaccine and treatment, Comirnaty and Paxlovid.
Both companies’ boards have unanimously approved the deal. They expect to complete the transaction in late 2023 or early 2024. It still needs approval from Seagen’s stockholders.