Pfizer is to acquire global technology company Seagan in a definitive merger agreement for a total enterprise value of $43 billion.
The Boards of Directors of both Pfizer and Seagen have unanimously approved the transaction in which Pfizer will acquire Seagen for $229 in cash per Seagen share, up to the total of $43 billion. Transaction completion is expected late 2023 or early 2024.
The acquisition will see Pfizer add Seagens’s medicines, late-stage developmental programs and pioneering expertise in Antibody-Drug Conjugates (ADCs) to its extensive oncology portfolio that includes 24 approved cancer medicines.
“Together, Pfizer and Seagen seek to accelerate the next generation of cancer breakthroughs and bring new solutions to patients by combining the power of Seagen’s antibody-drug conjugate (ADC) technology with the scale and strength of Pfizer’s capabilities and expertise,” said Dr. Albert Bourla, Chairman and CEO, Pfizer.
Pfizer will finance the acquisition through $31 billion of long-term debt and expect to achieve up to $1 billion in cost efficiencies in the third year.
Seagen are expected to generate a revenue of $2.2 billion in 2023. Subject to clinical timelines and regulatory successes, growth trajectories predict that in 2030 Seagen will contribute over $10 billion in risk-adjust revenues.
Focused on discovering, developing and commercializing transformation cancer medicines Seagen is a pioneering leader in ADC technology, with 25 years of experience.
“The addition of Seagen’s world-leading ADC technology will position us at the forefront of innovative cancer care, and strongly complements our existing portfolio across both solid tumors and hematologic malignancies. We believe the combination of our teams, and respective areas of strength and global footprints will allow us to realize Seagen’s potential and advance even more potential breakthroughs to patients with cancer,” comments Chris Boshoff, CDO Oncology and Rare Disease, Pfizer.
Of the 12 FDA-approved and marketed ADC’s, 4 of these use Seagen’s technology. Its portfolio includes 3 best-in-class or first-in-class, for their respective indications – solid tumors and hematological malignancies – ADC’s, ADCETRIS, PADCEV and TIVDAK, as well as TUKYSA.
Clinical development programs are ongoing for each of its ADC’s in new tumor types and indications as the Company moves towards treating larger patient populations.
Access to Pfizer’s protein engineering and medicinal chemistry capabilities will facilitate Seagens expanding pipeline. As it works to develop innovative technologies, Seagen is poised to enter multiple Investigational New Drug Applications (INDs).
“The proposed combination with Pfizer is the right next step for Seagen to further its strategy, and 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,” states David Epstein, CEO, Seagen.
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