Pfizer (PFE) is reportedly in the early stages of talks to acquire cancer drugmaker Seagen (SGEN) in a potential multi-billion dollar deal. The offer could be well over $30 billion, but there may be hurdles, including the potential for a stringent antitrust review of any proposal. Shares rose 13% to $182.55 on Monday, but Pfizer declined to comment on the report, while Seagen did not immediately respond to a Reuters request for comment.
- Seagen earned almost $2 billion in revenue last year with its antibody-drug conjugate treatments, including Adcetris for lymphoma and Tukysa for breast cancer. With Pfizer facing an estimated $17 billion loss in annual sales by 2030 due to patent expirations and declining COVID demand, Seagen is an attractive takeover target for Pfizer.
Why it matters
Pfizer focuses on acquisitions to drive development and regularly evaluates its portfolio. Recent acquisitions include clinical-stage firm Arena, biopharmaceutical company GBT, and migraine treatment developer Biohaven. The acquisition of Seagen is expected to enhance Pfizer's product portfolio pending antitrust review.