Pfizer acquires Medivation for $14 billion
pharmafile | August 22, 2016 | News story | Sales and Marketing | Medivation, Pfizer, acquisition, oncology
Pfizer has sealed the deal to acquire US cancer drug company Medivation for close to $14 billion in a move to reinforce its oncology portfolio.
The board of directors for both companies have unanimously approved the merger for $81.50 a share in cash.
The news comes following reports that Pfizer, Sanofi, Celegene and Gilead Sciences had all expressed interest in acquiring the company, with MSD the latest to join the race. Sanofi had previously made an offer of $9.8 billion to acquire the company back in April.
“The proposed acquisition of Medivation is expected to immediately accelerate revenue growth and drive overall earnings growth potential for Pfizer,” said Ian Read, chairman and chief executive officer at Pfizer. “The addition of Medivation will strengthen Pfizer’s Innovative Health business and accelerate its pathway to a leadership position in oncology, one of our key focus areas, which we believe will drive greater growth and scale of that business over the long-term. This transaction is another example of how we are effectively deploying our capital to generate attractive returns and create shareholder value.”
This means that Pfizer gains access to market Medivation’s largest selling prostate cancer drug Xtandi, which currently holds 51% of the market and is projected to help Pfizer generate $1.3 billion in annual sales by 2020. This is the company’s highest profile move since its attempted inversion with Allergan fell through in April.
“We believe the combination with Pfizer is the right next step in our growth trajectory and is a testament to the passion and dedication by which the Medivation team has delivered on our mission to profoundly transform patients’ lives through medically innovative therapies,” said David Hung, founder, president and CEO of Medivation. “This compelling transaction will deliver significant and immediate value to our stockholders and provides new opportunities for our employees as part of a larger company. We believe that Pfizer is the ideal partner to extend the reach of our blockbuster Xtandi franchise and take our promising, late-stage assets – talazoparib and pidiluzimab – to their next stages of development so that they can be made available to patients as quickly as possible.”
Pfizer does not expect the transaction to impact its current financial guidance for 2016.
Matt Fellows
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