Pfizer to boost access to cancer drugs with acquisition
Pfizer will spend approximately US$43 billion to go deeper into new cancer treatments that target tumor cells while sparing surrounding healthy tissue.
The pharmaceutical giant announced Monday that it will pay $229 in cash for each share in Siegen. After that, Pfizer plans to allow biotech drug developers to “continue to innovate,” but Pfizer chairman and CEO Albert Bourra said Pfizer chairman and CEO Albert Bourra said the analyst told.
“We’re not buying golden eggs,” he said. “We’ve got a goose that lays golden eggs.”
Seagen Inc., based in Bothell, Washington, specializes in antibody drug conjugate (ADC) technology. Its flagship product uses lab-made proteins called monoclonal antibodies that help locate cancer cells and deliver cancer-killing drugs while sparing surrounding tissue.
Cancer care is a priority for Pfizer. They brought his US$12 billion in revenue to pharmaceutical companies last year. However, Pfizer only sells a few first-generation ADC treatments, a spokesperson said.
Seagen has four treatments. It also has a pipeline of medicines in development, including potential treatments for lung cancer and advanced breast cancer.
“We believe this will dramatically change Pfizer’s presence in oncology and make it unique,” Bourla said.
Seagen’s top-selling Adcetris treats cancers of the lymphatic system. Last year, he had $839 million in sales, up 19% from the previous year.
Seagen also has an agreement with Pfizer’s Array BioPharma to develop, manufacture and market Tukysa, a treatment for breast and colorectal cancer. Last year his Seagen sales were $353 million.
The company, which changed its name from Seattle Genetics in 2020, saw its total revenue grow about 25% last year to about $2 billion. Seagen also cut losses from his $674 million in 2021 to his $610 million.
Drug developers expect sales of about US$2.2 billion this year.
Pfizer posted about $100 billion in total revenue last year, and cash is plentiful thanks to sales of its COVID-19 vaccine and treatment, Comminati and Paxlovid.
Bourla said earlier this year that the company plans to use its “extraordinary firepower” to buy products that will generate US$25 billion in revenue by 2030.
The deal was announced Monday, and several previous acquisitions help Pfizer account for most of it. Emphasize expectations.
New York-based Pfizer has already spent $11.6 billion on migraine treatment developer Biohaven Pharmaceuticals. He also spent $5.4 billion on sickle cell drug maker Global Blood Therapeutics, and he bought Arena Pharmaceuticals for $6.7 billion.
Pharmaceutical companies need more revenue streams as they face expiring patents that protect drugs like the breast cancer drug Ibrance from cheaper competition in the next few years.
Pfizer said Monday it will pay Seagen primarily through new long-term debt of US$31 billion.
The boards of directors of both companies have unanimously approved the transaction. But regulators still have to consider it, and Seagen’s shareholders have to approve it.
The companies expect to complete the transaction in late 2023 or early 2024.
Pfizer’s shares rose 2% to $40.26 after the market opened on Monday, while Seagen’s shares rose more than 15% to nearly $200. The broader index rose slightly.