Daily Management Review

Pfizer buys Medivation for $ 14 billion


08/22/2016


American pharmaceutical company Pfizer Inc. is going to buy biotech company Medivation Inc., specializes in development of anti-cancer drugs, for $ 14 billion.



jfcherry
jfcherry
Pfizer will pay $ 81.50 in cash per Medivation’s share, Pfizer announced in its report. This is 21% higher than cost of Medivation shares on closing of the market on Friday. Boards of directors of both companies unanimously approved the transaction.

Pfizer believes that acquisition of Medivation will increase Pfizer’s earnings per share by $ 0.05 in the first full year after closing of the transaction.

"Acquisition of Medivation is expected to immediately accelerate revenue growth, and support potential increase of Pfizer’s profit as a whole", - said chairman of Board of Directors and Chief Executive Officer of Pfizer Ian Read.

The deal is also expected strengthen Pfizer’s business in the field of innovative products, and accelerate promotion of the company to leading position in the field of oncology drugs, which is one of Pfizer’s key activities, the company said.

The transaction will require approval of relevant regulators. It is expected to be closed in the III or IV quarters of 2016.

Earlier this year, Medivation rejected a purchase offer for $ 9.3 billion from French Sanofi.

Pfizer's share price in the primary auctions decreased by 0,5%, Medivation’s papers rose by 20% to $ 80.58.

Pfizer expects that the acquisition will benefit the company's accounts in the first year after closing. Analysts say that prostate cancer drugs in the product line will get along with Pfizer’s brand Ibrance, a breast cancer prescription medicine.

Now, Medivation produces another remedy for prostate cancer, enzalutamide. The drug is used in later stages of the disease. The company is also working on an experimental drug called Talazoparib, also meant to beat breast cancer.

Earlier, Pfizer announced acquisition of Bamboo Therapeutics’ share, which did not belong to Pfizer before. The company is also located in the US, according to FirstWord Pharma. Amount of the transaction may amount to $ 645 million.

Under the agreement, Pfizer will make an advance payment in the amount of $ 150 mln., and then pay up to $ 495 million. Previously, Pfizer has already acquired a 22%-stake in Bamboo Therapeutics for $ 43 million.

Bamboo Therapeutics specializes in development of gene therapy products for treatment of orphan diseases. Its experimental products portfolio includes gene therapy drugs that use recombinant adeno-associated virus (rAAV), including medications for Duchenne muscular dystrophy (preclinical studies), Friedreich's ataxia (preclinical studies), Canavan disease (preclinical studies), as well as giant axonal neuropathy (I phase of clinical trials).

Under the deal, Pfizer will get the company’s production division, which produces material for clinical trials.

source: wsj.com






Science & Technology

Apple takes up to develop Apple Watch for health monitoring

Hyperloop is growing in Europe

Analysts: US gamers prefer mobile games

Google Assistant Winner Of Head-To-Head Test Of Digital Assistants, Beats Siri And Alexa

Animals Can Burn Muscle To Supplement Body Water Needs, Finds A Study

The future of private flights at Farnborough air show

Experts Want To Fix Problem Of AI Hurting People Of Color And The Poor

New Study Claims Astrobiologists Locating Possible Life On Moon In Its Life Time

Wreck Of Russian Ship Rumoured To Have 5,500 Boxes Of Gold Found Near South Korean Island

Gene Editing of Human Embryo Could Find ‘Moral’ Grounds: UK’s Ethics Council

World Politics

World & Politics

Venezuela comes up with a new monetary reform

Paris is losing its icon public bicycle sharing system

Heat wave in Europe creates problems for brewers

Is it legal to print a gun? US is discussing 3D printing of firearms

Southeast Asian Leaders To Seek Clarity Of US Policies For The Region Form Pompeo

The world economy is accumulating environmental debt

US To Invest $113 Million In Asia To Counter Chinese Influence

US Intelligence Detects New Activity At Its Missile ICBM Factory: Reports