Pfizer plans to acquire oncology-focused biotech Seagen for a total enterprise value of $43 billion (€40 billion) as the US pharmaceutical company refills its drugs pipeline.
Albert Bourla, Pfizer’s chief executive, said it is “deploying its financial resources to advance the battle against cancer”.
Pfizer has agreed to buy Seagen for $229 in cash per share, funding the transaction through $31 billion of new long-term debt, as well as short-term financing and cash.
In 2023, Seagen expects revenue of about $2.2 billion, a 12 per cent rise year-on-year. In 2030, Pfizer believes Seagen could contribute more than $10 billion in risk-adjusted revenues.
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Merck was in talks to acquire Seagen last summer, offering about $200 per share, according to people familiar with the matter.
Any deal would have to pass antitrust scrutiny in the United States, where the Biden administration has tightened scrutiny of pharmaceutical mergers as it aims to drive down drug prices.
Analysts said a tie-up between Pfizer and Seagen would be unlikely to provoke a negative response from the Federal Trade Commission given there is limited overlap between the companies’ products.
“We see no FTC concerns, as Pfizer does not have an antibody-drug conjugate or even a major antibody-based oncology platform,” said Evan Seigerman, analyst at BMO Capital Markets. – Copyright The Financial Times Limited 2023
