Daily Management Review

Pfizer buys Medivation for $ 14 billion


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

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

Europe overtakes US by number of patents for self-driving car technologies

Samsung introduces display technology for folding screens

How retailers use technologies to increase sales

Facebook releases videochat devices Portal and Portal Plus

Smartphone makers will pay for pre-installing Google apps‍

Five loudest data leaks

Airbus announces Moon exploration competition

Former Head Of Google China Thinks Funding In AI Should Be Doubled By US

Germany Introduces The First Ever Train To Run On 100% Hydrogen

Germany Plans On Cyber Security Research To End Reliance On U.S. Tech

World Politics

World & Politics

Brexit Negotiators Of Both Parties Close Down On Irish Border Text, Reports RTE

Bloomberg: Theresa May can face catastrophic defeat in parliament

New Asian Foreign Policy May Be Set By Congress After Democrats Taking Control Of House

Italy refuses to change draft budget

Italy is about to tighten its migration policy

Macron calls to create a pan-European army

Signals Of Mending Of US-China Emerge Before Anticipated G20 Meet

Moscovici: the European Commission may impose sanctions on Italy