Pfizer Confirms $43B Seagen Acquisition Deal
In this morning’s press announcement, Pfizer confirmed a $43 billion definitive acquisition deal with Seagen, expanding its oncology medicines portfolio.
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- After speculation about acquisition deals earlier this month, Pfizer Inc has officially confirmed its acquisition of Seagen Inc. The $43 billion deal was a strategic move by Pfizer to expand the company’s oncology medicines portfolio.
“Pfizer is deploying its financial resources to advance the battle against cancer, a leading cause of death worldwide with a significant impact on public health,” said Albert Bourla, PhD, Pfizer Chairman, and Chief Executive Officer, in the press release.
While an anticipated $40 billion deal by Merck to acquire Seagen fell through in August 2022 due to differing opinions on pricing assets, this deal has entered the final stages of acquisition. According to the press release, executives at both companies have unanimously agreed to the deal that offers $229 in cash for each share at Seagen.
After considerable growth in 2022, which generated $2 billion in revenue, Seagen is expected to generate roughly $2.2 billion in revenue throughout 2023. The company is demonstrating 12% year-over-year growth. Projections estimate that revenues by 2030 will be nearly five times greater, generating roughly $10 billion in that year.
The company’s primary focus is treatments in oncology, including its four major oncology medications, Adcetris, Padcev, Tivdak, and Tukysa. It’s expected to continue expanding its oncology portfolio, developing new drugs, and enhancing its existing medicines.
Comparatively, Pfizer has continued to expand its oncology portfolio in recent years, with 24 approved cancer medications in its arsenal. Described as an industry-leading portfolio, Pfizer Oncology generated roughly $12.1 billion in 2022.
Despite Pfizer Oncology focusing on breast cancer, genitourinary cancer, hematology, and precision medicine, this sector of Pfizer Inc is backed by the widely successful revenues generated by the Pfizer COVID-19 vaccine.
According to the press release, Pfizer plans to fund the acquisition using multiple methods, including $31 billion in new long-term debt, short-term financing options, and existing cash — likely from the $100 billion in revenue the organization made in 2022.
“Together, Pfizer and Seagen seek to accelerate the next generation of cancer breakthroughs and bring new solutions to patients by combining the power of Seagen’s antibody-drug conjugate (ADC) technology with the scale and strength of Pfizer’s capabilities and expertise,” added Bourla. “Oncology continues to be the largest growth driver in global medicine, and this acquisition will enhance Pfizer’s position in this important space and contribute meaningfully to the achievement of Pfizer’s near- and long-term financial goals.”
