On Monday, Pfizer acquired Seagen for $43 billion, gaining four approved cancer treatments generating nearly $2 billion in 2022. Despite possible antitrust scrutiny given the deal's size, Pfizer expressed confidence that the acquisition can be finalized by late 2023 or early 2024.
- Seagen stands to gain from the Inflation Reduction Act (IRA) proposed by President Joe Biden, which includes a cap on out-of-pocket healthcare spending for elderly Americans. This could mean that more individuals will be able to access the costly treatments offered by the company.
Why it matters
Pfizer is expecting a drop in COVID-related sales this year, following an all-time high of $100 billion in revenue from its vaccine and antiviral drug Paxlovid. To navigate this decrease, Pfizer is concentrating on its oncology sector, which it anticipates will be the most lucrative area for the industry. By acquiring Seagen, Pfizer is preparing for a decline in COVID-19 sales and generic alternatives to its top-selling drugs.