Pfizer says close to US$14b deal to acquire Medivation
The deal may be announced as early today, said the people, who asked not to be identified. The biotech company closed at US$67.16 on Friday, giving it a market value of US$11.1 billion.
Pfizer has been relying on new branded treatments, including cancer drugs, to boost revenue as sales of older drugs have slowed. In August, the drugmaker reported earnings that beat expectations after sales of its breast cancer treatment Ibrance were better than analysts’ estimates.
Chief Executive Officer Ian Read said in May that he was more interested in acquiring late-stage assets because the New York-based company already had plenty of early-stage drugs in the works. By acquiring Medivation, Pfizer would gain a blockbuster prostate-cancer treatment, Xtandi, that’s already approved and that analysts project will generate US$1.33 billion in sales by 2020.
Pfizer spokeswoman Joan Campion declined to comment. Medivation representatives didn’t immediately respond to phone calls and e-mails requesting comment.
Medivation previously had rejected French drugmaker Sanofi’s offer of US$58 a share, plus a contingent value right valued at a maximum of US$3 a share. The Financial Times reported earlier yesterday that the Pfizer agreement was imminent. — Bloomberg
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