Pfizer Inc. (NYSE: PFE) has reached an agreement to acquire Bothell-based biotech Seagen Inc. (Nasdaq: SGEN) for $229 per share in cash, or $43 billion total.
The companies expect the deal to close late this year or early next year.
New York City-based Pfizer has 24 approved cancer medicines. With the purchase of Seagen, Pfizer gets four more approved cancer drugs, which are aimed at Hodgkin lymphoma and bladder, breast and cervical cancer.
“Pfizer is deploying its financial resources to advance the battle against cancer,” Albert Bourla, Pfizer's CEO, said in a release. “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.”
Pfizer generated $100.3 billion in revenue last year, while its oncology business generated $12.1 billion. Seagen, meanwhile, generated $2 billion in revenue last year, and the companies said in a release that Seagen expects to generate about $2.2 billion this year. According to Pfizer, Seagen could generate over $10 billion in revenue in 2030.
Although both boards have approved the deal, Seagen shareholders still need to approve it. The acquisition is also subject to regulatory approval. Charles Hill, professor emeritus of management and organization at the University of Washington, previously told the Business Journal the Biden administration has become more activist regarding mergers and acquisitions. Pfizer, however, last year completed acquisitions of Global Blood Therapeutics and Biohaven Pharmaceutical.
"It depends on the overlaps between what Pfizer has and what Seagen has," Hill said previously. "It's typically a market share calculation."
Seagen was founded in 1998 as Seattle Genetics. It is currently building a 270,000-square-foot biomanufacturing facility in Everett set to open in 2024.
David Epstein, a former executive at the Swiss pharmaceutical giant Novartis, was named Seagen's CEO in November. The announcement came after Seagen co-founder and former CEO Clay Siegall resigned in May following an arrest on suspicion of domestic violence. Siegall faces no criminal charges stemming from the arrest.
"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," Epstein said in a release.
