(New York) The American pharmaceutical giant Pfizer confirmed Thursday the finalization, as expected, of the takeover of the biotech Seagen, one of the largest investments in its history, with a cost of around $43 billion which allows it to strengthen in oncology.
“Cancer remains one of the leading causes of death and one in three people in the United States will be diagnosed with cancer in their lifetime,” noted Albert Bourla, boss of Pfizer, quoted in a press release.
Thanks to Seagen, “we will do everything we can to fight cancer with the goal of achieving breakthroughs that will significantly improve the lives of people suffering from cancer,” he said.
Pfizer announced on March 13 the purchase of the biotech for $43 billion, financed by debt and its cash flow. He indicated on Tuesday that it should be effective on Thursday, thanks to the expiration of deadlines linked to antitrust measures and the obtaining of regulatory green lights.
Seagen has developed targeted therapies, with the aim of targeting cancer cells with greater precision, thus reducing side effects, a promising technology.
Four of its treatments have already been approved by American authorities.
By combining Seagen’s technology and “the size and strength of Pfizer’s capabilities, we are positioned to change the paradigm of cancer treatment,” Bourla said, emphasizing that oncology would be “an important growth driver for Pfizer” and would contribute “to the achievement of our short- and medium-term financial objectives.”
Following the merger, the group’s oncology portfolio includes 25 treatments approved for more than forty indications and the number of products in development has doubled to reach around sixty programs.
To allay concerns from the competition authority, the Federal Trade Commission (FTC), Pfizer has “chosen to irrevocably donate the rights generated by sales of Bavencio (avelumab, anticancer drug) in the United States to the American Association Cancer Research”.
It unveiled its financial forecasts for 2024 including Seagen on Wednesday, which disappointed the markets because they were lower than their expectations. Its stock, which lost more than 10% on Wednesday, opened the session on Thursday up a small 0.98%.
