Pfizer looks beyond COVID sales with $43bn deal for cancer drugmaker Seagen

The deal will add four approved cancer therapies with combined sales of nearly $2 billion in 2022

Manas MishraReuters
Published : 13 March 2023, 12:09 PM
Updated : 13 March 2023, 12:09 PM

Pfizer Inc on Monday struck a roughly $43 billion deal for Seagen Inc 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 (ADCs), 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.

Pfizer rival Merck & Co Inc and Seagen were in advance deal talks last year but that reportedly collapsed over fears of tough anti-trust scrutiny.