Pfizer Inc. expects to close its $43 billion acquisition of Seagen Inc., on December 14, 2023.
Pfizer Inc. has cleared all regulatory hurdles to complete its $43 billion acquisition of Seagen Inc., which is expected to be completed this week, the company announced in a press release. The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 expired on December 11, 2023, for the pending deal, which Pfizer expects to close on December 14, 2023, pending the satisfaction of other customary closing conditions.1
To clear regulatory concerns from the Federal Trade Commission, Pfizer will irrevocably donate US royalties from sales of Bavencio (avelumab) to the American Association for Cancer Research (AACR). The donation will bolster the mission of AACR to provide research, education, communication, collaboration, science policy, and funding for cancer research. Bavencio is currently the standard-of-care for first-line bladder cancer and generated $271 million in 2022.1
When announced in March, Pfizer stated the deal to acquire Seagen will significantly bolster their current oncology portfolio with Seagen’s late-stage development programs and expertise in antibody-drug conjugates.2
“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 and chief executive officer, in a press release.2 “Together, Pfizer and Seagen seek to accelerate the next generation of cancer breakthroughs and bring new solutions to patients by combining the power of Seagen’s (ADC) technology with the scale and strength of Pfizer’s capabilities and expertise. Oncology continues to be the largest growth driver in global medicine, and this acquisition will enhance Pfizer’s position in this important space and contribute meaningfully to the achievement of Pfizer’s near- and long-term financial goals.”
Seagen projects to generate approximately $2.2 billion in revenue in 2023, which is 12% year-over-year growth. Pfizer said that the addition of Seagen to its current operations could add more than $10 billion in risk-adjusted revenues by 2030, with the potential for significant growth thereafter.2
In addition to Bavencio, Seagen’s portfolio includes three FDA-approved medications that are first- or best-in-class for their indications across solid tumors and hematologic malignancies: Adcetris (brentuximab vedotin), Padcev (enfortumab vedotin), and Tivdak (tisotumab vedotin).
“Pfizer shares our steadfast commitment to patients, and this combination is a testament to the passion, dedication and talent of the Seagen team to achieve our mission to discover, develop, and commercialize transformative cancer medicines that make a meaningful difference in people’s lives,” Seagen Chief Executive Officer David Epstein said in a press release.2 “The proposed combination with Pfizer is the right next step for Seagen to further its strategy, and this compelling transaction will deliver significant and immediate value to our stockholders and provide new opportunities for our colleagues as part of a larger science-driven, patient-centric, global company.”
As part of the acquisition, Pfizer will restructure the organization by combining its oncology commercial and R&D operations as the newly formed the Pfizer Oncology Division, which will be led by Chris Boshoff, MD, PhD, head of Pfizer’s oncology R&D for the past six months. Pfizer will split its non-oncology commercial business into two organizations for operations in the United States and for the rest of the world.
“The completion of all regulatory reviews in association with the Seagen acquisition supports our belief that this transaction is good for patients in the battle against cancer,” Bourla said in a release.1 “With the anticipated Seagen closing in the coming days, Pfizer has announced changes to the company’s commercial structure designed to maximize the impact of this transaction and enhance our commercial execution across all the company’s therapeutic areas.”
References
1. Pfizer Receives All Required Regulatory Approvals to Complete the Acquisition of Seagen. Pfizer Inc. News release. December 12, 2023. Accessed December 13, 2023. https://www.pfizer.com/news/press-release/press-release-detail/pfizer-receives-all-required-regulatory-approvals-complete
2. Pfizer Invests $43 Billion to Battle Cancer. Pfizer. News release. March 13, 2023. Accessed December 13, 2023. https://www.pfizer.com/news/press-release/press-release-detail/pfizer-invests-43-billion-battle-cancer