Pfizer announced this week it plans to acquire Seagen, a biotechnology company focused on cancer treatments, in a deal valued at $43 billion.
New York-based drug giant Pfizer, which has a facility in Groton, said the acquisition will be for $229 in cash per Seagen share. The boards of directors for both companies have unanimously approved the merger agreement.
Seagen is based in Bothell, Washington, and it develops and commercializes medicine to fight cancer.
Pfizer CEO Albert Bourla noted that cancer is a leading cause of death worldwide, and the two companies aim to accelerate cancer-fighting breakthroughs.
“Oncology continues to be the largest growth driver in global medicine, and this acquisition will enhance Pfizer’s position in this important space and contribute meaningfully to the achievement of Pfizer’s near- and long-term financial goals,” Bourla said.
The companies expect the deal will be finalized in late 2023 or early 2024, subject to conditions such as stockholder and required regulatory approvals.
Seagen anticipates it will generate approximately $2.2 billion in revenue this year. Between its existing approved medicines and pipeline, Pfizer anticipates Seagen will contribute more than $10 billion in revenue by 2030.
Seagen is known for its “antibody-drug conjugate (ADC) technology,” according to Pfizer, and its current portfolio includes approved cancer-targeting medications such as Adcetris, Padcev and Tivdak. The company also commercializes Tukysa.
Seagen CEO David Epstein called the planned merger the “right next step for Seagen to further its strategy.”
“This compelling transaction will deliver significant and immediate value to our stockholders and provide new opportunities for our colleagues as part of a larger science-driven, patient-centric, global company,” Epstein said.
Pfizer Oncology currently has a portfolio of 24 approved cancer medicines that generated $12.1 billion in 2022 revenues. Pfizer’s portfolio is focused on breast cancer, genitourinary cancer, hematological malignancies and precision medicine, with a pipeline of 33 programs in clinical development.
The planned merger with Seagen would double Pfizer’s early-stage oncology clinical pipeline, according to the announcement.
Chris Boshoff, Pfizer’s chief development officer, oncology and rare disease, said the combined companies would allow them to “advance even more potential breakthroughs to patients with cancer.”
Contact Michelle Tuccitto Sullo at msullo@newhavenbiz.com.
