Pfizer buys biotech company Seagen for $43 billion

Pharmaceutical corporation Pfizer Inc. and biotechnology company Seagen Inc. announced today, March 13, that they have reached a definitive merger agreement under which Pfizer will acquire the biotech company for $299 per share. Thus, the entire transaction is estimated at $43 billion.

Seagen specializes in so-called toxin-immunoconjugates, tumor-targeted drugs that are an alternative to chemotherapy that, unlike chemotherapy, do not affect healthy cells. Seagen’s best-known drug, Adcetris, is used to treat various types of lymphoma.

The news of the deal did not come as a surprise. Seagen was in merger talks with Merck last year, but those talks came to nothing. And at the end of February of this year, messages about a possible deal between Pfizer and Seagen. At the same time, it was said that the amount of the transaction would not be lower than $30 billion, given that the then market capitalization of the company was $33 billion.

The acquisition of Seagen will help Pfizer cut sales losses for its patents expiring in the next few years. According to Pfizer forecasts, by 2030 its sales may be reduced by $17 billion. Seagen’s annual sales are now about $2 billion.

After the deal was announced, Seagen shares soared 18% in over-the-counter trading. Pfizer shares fell 2.36%.

Andrey Kelekeyev