Pfizer To Acquire Medivation in $14 Billion Deal
|XTALKS VITALS NEWS
The winning bid is worth a staggering $81.50 per share, surprising analysts who thought that $75 would be the ceiling.
Tweetables from this article:
Medivation has accepted Pfizer’s $14 billion bid to acquire the company, after a months-long process.
Last year, Medivation’s PARP inhibitor, talazoparib, was projected to bring in $200 million at its peak.
August 23, 2016 | by Sarah Massey, M.Sc.
Medivation has accepted Pfizer’s $14 billion bid to acquire the company, after a months-long process involving other bidders. The company was originally approached by Sanofi whose initial bid was $9.3 billion.
The winning bid is worth a staggering $81.50 per share, surprising analysts who thought that $75 would be the ceiling. Although Sanofi was the only other company to officially confirm their interest in acquiring the biopharmaceutical company, some have speculated that Pfizer beat out a number of other contenders, including Celgene, Merck and Gilead.
“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 CEO of 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.” According to a statement released by Pfizer, the agreement is an all-cash deal.
Medivation’s blockbuster prostate cancer drug, Xtandi (Astellas), and its Phase III PARP inhibitor oncology drugs were major factors in the bidding war. The acquisition represents a significant boost for Pfizer, after its record-breaking deal with Allergan fell through earlier this year.
Last year, Medivation’s PARP inhibitor, talazoparib, was projected to bring in $200 million at its peak. Also in the company’s pipeline are the blood cancer drug, pidilizumab, currently being tested in a Phase II clinical trial, as well as a bladder cancer drug candidate, and a multiple myeloma therapy – both of which are in the early stages of development.
“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 Dr. David Hung, founder, president and CEO of Medivation. “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.”
Keywords: Acquisition, Biopharmaceutical, Pipeline
| NEXT ARTICLE | MORE NEWS | BLOGS | VIDEOS | POLLS & QUIZZES | WEBINARS |
Share this with your colleagues!