Pfizer to acquire Medivation for $14 billion
Click Here to Manage Email Alerts
Pfizer will acquire Medivation for $81.50 per share in cash as part of a definitive merger agreement announced this morning.
The transaction — unanimously approved by both companies’ boards of directors — will be worth approximately $14 billion.
“The proposed acquisition of Medivation is expected to immediately accelerate revenue growth and drive overall earnings growth potential for Pfizer,” Ian Read, chairman and CEO of Pfizer, said in a press release. “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.”
Medivation has focused on developing and commercializing small molecules for oncology. Its portfolio includes enzalutamide (Xtandi), an androgen receptor inhibitor developed in conjunction with Astellas and indicated for treatment of metastatic prostate cancer. The acquisition also includes two drugs in developmental stages: talazoparib, designed to treat BRCA–mutated breast cancer, and pidilizumab, designed to treat diffuse large B-cell lymphoma and other hematologic malignancies.
“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,” David Hung, MD, founder, president and CEO of Medivation, said in the press release. “We believe that Pfizer is the ideal partner to extend the reach of our blockbuster enzalutamide franchise and take our promising, late-stage assets — talazoparib and pidilizumab — to their next stages of development so that they can be made available to patients as quickly as possible.”
Pfizer intends to complete the acquisition in the third or fourth quarter of this year.