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

Hundreds Of Thousands Of Routers Have Been Hacked By Russians, Warns The FBI

Chinese Study Claims Heart Diseases Can Be Reduced By Having An Egg A Day

Asteroid mining: Reality or fiction?

3D Printing Used For Life Saving Kidney Transplant In Two Year Old At U.K. NHS

California to require solar panels for new homes by 2020

Blockchain Enables De Beers To Track Diamond From The Miner To The Retailer

Microsoft releases Windows 10’s April 2018 Update

DNA Sequencing Project Proposed For All Complex Life Forms On Earth By An Int’l Team

Facebook may start production of its own microprocessors

Long-Term Alcohol Monitoring Could Be Possible With A New Injectable Chip Developed By U.S. Researchers

World Politics

World & Politics

The British government is trying to unblock money to pay off the national debt

Ministerial Visit From India To North Korea Aimed At Strengthening Ties

What countries are the biggest losers of Trump’s Iran decision?

World's Oldest Elected Prime Minister Is Malaysia’s 92 Year Old Mahathir Mohamad

Why Is U.S. Pulling Out Of The Iran Deal A Big Deal For The World

Merkel, Macron, May call on Iran to adhere to the nuclear deal

Arab Region Driven In ‘Wrong Direction’ In Last 10 Years, Say Arab Your: Survey

German doctors demand a tax on sugar