Pfizer has acquired biotech drug developer Seagen Inc. in a $43 billion deal, the company announced in a statement Monday.
Today we’re stepping up the fight against cancer – entering into an agreement under which @Pfizer will acquire @SeagenGlobal, a pioneer in antibody-drug conjugate technology, which is rapidly emerging as a powerful tool in cancer treatment: https://t.co/poXKrkBIG1 pic.twitter.com/AoBjQ6XGrs
— Albert Bourla (@AlbertBourla) March 13, 2023
Bourla compared the technology involved in the treatment, called Antibody-Drug Conjugates (ADC), to the mRNA technology used in Pfizer’s Covid vaccine. The Pfizer CEO touted the acquisition in an interview with CNBC, saying that ADC treatments are “turbo charge guided missiles that are attacking the cancer cells and can make a huge difference.”
NEW — Pfizer CEO Albert Bourla Announces Acquisition of Cancer Treatment Biotech Seagen For $43 Billion
“1-in-3 people in the world are going to have cancer in their lifetime…This is something like the mRNA for vaccines, [but] this is for cancer.” pic.twitter.com/ZZWvFGzSvK
— Chief Nerd (@TheChiefNerd) March 13, 2023
The $43 billion deal breaks down to $229 per share, the Economic Times reported. Seagen was trading at $197.65 when markets closed Monday, according to Yahoo Finance.
Seagen saw marked increases in two of its most popular drugs in 2022. Sales of Padcev, a treatment for some urinary tract cancers, increased 33% to $451 million. Its top seller, a lymph cancer drug called Adcetris, boosted sales 19% to $839 million. The company in total anticipates a 12% increase in revenues for 2023 amounting to an estimated $2.2 billion. Pfizer believes the acquisition could contribute “$10 billion in risk-adjusted revenues” by 2030, according to the Economic Times.
Pfizer’s 2022 revenue neared $100 billion thanks to its host of Covid treatments and vaccines. In January, Bourla said the company will use this “extraordinary firepower” to launch 19 new products in an effort to pull in an additional $25 billion in revenue, the outlet reported.
The Seagen acquisition is just one of many the pharmaceutical giant has made since 2022. Other notable purchases include a $6.7 billion acquisition of Arena Pharmaceuticals and a $5.4 billion purchase of Global Blood Therapeutics.
The deal still awaits approval from Seagen’s stockholders but both companies’ boards have unanimously approved the sale, the Economic Times reported.