• Tue. Dec 5th, 2023

Seagen’s $43B Deal To Double Pfizer’s Early-Stage Oncology Pipeline, Seagen Says Is Right Step – Seagen (NASDAQ:SGEN), Pfizer (NYSE:PFE)

ByVandana Singh

Mar 13, 2023
Seagen's $43B Deal To Double Pfizer's Early-Stage Oncology Pipeline, Seagen Says Is Right Step - Seagen (NASDAQ:SGEN), Pfizer (NYSE:PFE)

  • Pfizer Inc PFE has agreed to acquire Seagen Inc SGEN for $229 in cash per Seagen share for a total enterprise value of $43 billion. 
  • “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 Dr. Albert Bourla, Pfizer Chairman & CEO.
  • As per a Wall Street Journal report, the companies were in early talks with a deal valuing over $30 billion in February.
  • Related: Analyst Cautions Investors On Overreacting To ‘Early-Stage’ Pfizer/Seagen Discussions.
  • Seagen expects to generate approximately $2.2 billion of revenue in 2023, representing 12% Y/Y growth, from its four in-line medicines, royalties, and collaboration and license agreements. 
  • Pfizer believes Seagen could contribute more than $10 billion in risk-adjusted revenues in 2030, with significant potential growth beyond 2030.
  • The proposed combination with Seagen would double Pfizer’s early-stage oncology clinical pipeline.
  • Seagen’s portfolio includes four approved medicines across solid tumors and hematologic malignancies, including three antibody-drug conjugate (ADCs)-Adcetris (brentuximab vedotin), Padcev (enfortumab vedotin), and Tivdak (tisotumab vedotin). 
  • The company also commercializes Tukysa (tucatinib). 
  • Pfizer expects to finance the transaction substantially through $31 billion of new, long-term debt and the balance from a combination of short-term financing and existing cash. 
  • The transaction is expected to be neutral to slightly accretive to adjusted EPS in Q3 to Q4 post-close. 
  • Pfizer expects to achieve nearly $1 billion in cost efficiencies in the third full year after the completion of the transaction.
  • The companies expect to complete the transaction in late 2023 or early 2024.
  • Price Action: SGEN shares are up 15.9% at $200, and PFE shares are down 1.73% at $38.71 during the premarket session on the last check Monday.

Image and article originally from www.benzinga.com. Read the original article here.