Pfizer close to $14 billion deal to acquire Medivation
Pfizer Inc. is close to an agreement to buy Medivation Inc. for about $14 billion, people familiar with the situation said, the latest in a long run of blockbuster deals in the drug and biotechnology industries.
The deal may be announced as early as Monday, said the people, who asked not to be identified because the matter is still private. The biotech company’s shares closed at $67.16 on Friday, giving it a market value of $11.1 billion.
By acquiring Medivation, Pfizer would gain a blockbuster prostate-cancer treatment, Xtandi, that’s already approved for sale in the U.S. and elsewhere, and that analysts project will generate $1.33 billion in annual sales by 2020. Pfizer Chief Executive Officer Ian Read said in May that he was more interested in acquiring late-stage assets because the company already had plenty of early-stage drugs in the works.
Pfizer spokeswoman Joan Campion declined to comment. Medivation representatives didn’t immediately respond to phone calls and e-mails requesting comment.
Pfizer has been relying on new branded treatments, including cancer drugs, to boost revenue, as sales of older medicines have slowed. In August, the New York-based company reported earnings that beat expectations after sales of breast cancer treatment Ibrance were better than analysts’ estimates.
the mergers and amalgamations continue in the biotechnology sector..
“Pfizer would gain a blockbuster prostate-cancer treatment, Xtandi, that’s already approved for sale in the U.S. and elsewhere, and that analysts project will generate $1.33 billion in annual sales by 2020.”