Pfizer (NYSE:PFE) on Monday struck a roughly $43-billion deal for Seagen c to bulk up its cancer treatment portfolio, as the drugmaker braces for a steep fall in Covid-19 product sales and loss of exclusivity for some top sellers.
The deal, Pfizer’s largest since its $67-billion acquisition of Wyeth in 2009, will add four approved cancer therapies with combined sales of nearly $2 billion in 2022.
Pfizer said it would pay $229 in cash per Seagen share, a 32.7% premium to Friday’s closing price. The offer is also a nearly 42% premium to the stock’s close on Feb. 24, a day before the Wall Street Journal first reported on a possible deal.
Seagen’s shares rose to $204.60 before the bell on Monday.
Pfizer has hit the M&A trail with force in its quest to mitigate the impact from an anticipated $17 billion drop in revenue by 2030 due to patent expirations for top drugs and decline in demand for its Covid products.
The drugmaker expects more than $10 billion in “risk-adjusted” sales from Seagen in 2030.
Washington-based Seagen is a pioneer of antibody-drug conjugates, which work like “guided missiles” designed for a targeted destructive effect and spares healthy cells.
Pfizer’s portfolio of oncology therapies includes 24 approved drugs for cancer, including breast cancer treatment Ibrance.
PFE shares added 27 cents to its price, beginning Monday and the week at $39.66.
