PFIZER has bought US biopharmaceutical company Medivation, which specialises in oncology, for US$14bn.
Pfizer Innovative Health group president Albert Bourla said that the acquisition will transform Pfizer into a leading oncology company. Medivation makes XTANDI (enzalutamide), which is a leading hormone therapy for advanced metastatic prostate cancer, and is under investigation for non-metastatic prostate cancer, hormone-sensitive prostate cancer, advanced breast cancers and hepatocellular carcinoma. Medivation also has a late-stage oncology pipeline, including talazoparib, which is in a phase III study to treat breast cancer and pidilizumab, an immuno-oncology therapy for various cancers.
The US$81.50/share all cash offer represents a 21% premium compared to Medivation’s closing share price on 19 August, and was unanimously approved by both companies’ boards of directors.
“This compelling transaction will deliver significant and immediate value to our stockholders and provides new opportunities for our employees as part of a larger company. 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,” said David Hung, founder, president and CEO of Medivation.
The deal is expected to be completed by the end of the year.
Medivation has been the subject of several takeover offers in recent months, including from Roche, Astra Zeneca and Sanofi, which offered US$9.3bn. Hung told Sanofi that the company had “no interest in discussing the transaction”.
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