Pharmaceutical giant Pfizer agrees $14bn deal for Medivation
US pharmaceutical giant Pfizer has agreed a deal to acquire San Francisco-based Medivation for $14bn (£10.7bn).
Pfizer has announced it will pay $81.50 per share in cash for the biopharamaceutical company, which focuses on developing and commercialising small molecules for oncology.
Medivation's share price was up 20 per cent in pre-market trading to $67.16 at the time of writing.
The deal comes four months after Pfizer's record $160bn merger with Ireland-based Allergan collapsed following a US government crackdown on so-called tax inversion deals.
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In an announcement on Monday morning, Pfizer said Medivation generated around $2.2bn in global net sales in the last year.
Medivation – which was the subject of a $58-per-share bid from French pharma giant Sanofi earlier this year – is behind prostate cancer treatment Xtandi and Talazoparib, breast cancer drugs currently under development.
“The proposed acquisition of Medivation is expected to immediately accelerate revenue growth and drive overall earnings growth potential for Pfizer,” said Ian Read, chairman and chief executive of Pfizer.
The addition of Medivation will strengthen Pfizer’s Innovative Health business and accelerate its pathway to a leadership position in oncology, one of our key focus areas, which we believe will drive greater growth and scale of that business over the long-term. This transaction is another example of how we are effectively deploying our capital to generate attractive returns and create shareholder value.
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David Hung, managing director, founder, president and chief executive of Medivation, said:
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.