Pharmaceutical giant Pfizer looks all set to pump out $43 billion to acquire Seagen in a move to delve deep into treating cancer.

Both firms announced a definitive merger agreement under which Pfizer will acquire Seagen, a global biotechnology company that discovers, develops and commercialises transformative cancer medicines. 

According to reports, Pfizer will pay $229 per Seagen share. “Pfizer is deploying its financial resources to advance the battle against cancer, a leading cause of death worldwide with a significant impact on public health,” said Dr Albert Bourla, Pfizer Chairman and Chief Executive Officer on the company website. 

“Together, Pfizer and Seagen seek to accelerate the next generation of cancer breakthroughs and bring new solutions to patients by combining the power of Seagen’s antibody-drug conjugate (ADC) technology with the scale and strength of Pfizer’s capabilities and expertise. Oncology continues to be the largest growth driver in global medicine, and this acquisition will enhance Pfizer’s position in this important space and contribute meaningfully to the achievement of Pfizer’s near- and long-term financial goals," he added.

Washington-based Seagen Inc. is a biotech drug developer. Its key products use monoclonal antibodies that bind to the surface of a tumour cell to deliver a cancer-killing agent while sparing surrounding healthy tissue.

Seagen's top seller, Adcetris, treats lymphatic system cancers. It brought in $839 million in sales last year, a 19 per cent increase over the previous year. According to reports, Seagen eyes producing approximately $2.2 billion of revenue in 20231, representing 12% year-over-year growth, from its four in-line medicines, royalties, and collaboration and license agreements. 

Pfizer believes Seagen could contribute more than $10 billion in risk-adjusted revenues in 2030, with potential significant growth beyond 2030.

Seagen also saw sales grow 33 per cent to $451 million last year for Padcev, which treats some cancers of the urinary tract, including the bladder. The drugmaker is developing and selling that treatment with Astellas Pharma Inc.

Seagen anticipates generating approximately $2.2 billion of revenue this year, representing 12 per cent year-over-year growth, from its four in-line medicines, royalties, and collaboration and license agreements.

Pfizer believes Seagen could contribute more than $10 billion in risk-adjusted revenues in 2030, with potential significant growth beyond 2030.

Commenting on the deal, David Epstein, Seagen's Chief Executive Officer, said, “Pfizer shares our steadfast commitment to patients, and this combination is a testament to the passion, dedication, and talent of the Seagen team to achieve our mission to discover, develop, and commercialise transformative cancer medicines that make a meaningful difference in people’s lives."

According to him, the proposed combination with Pfizer is the right next step for Seagen to further its strategy, and this compelling transaction will deliver significant and immediate value to our stockholders and open up new vistas in a larger science-driven, patient-centric, global company.

Pfizer's portfolio of drugs includes the breast cancer treatment Ibrance, which brought in nearly $1.3 billion in sales last year.

The firm recorded about $100 billion in total revenue last year and has been flush with cash thanks to sales of its Covid-19 vaccine and treatment, Comirnaty and Paxlovid.

New York-based Pfizer Inc., which has already spent $11.6 billion on migraine treatment developer Biohaven Pharmaceutical, also shelled out $5.4 billion on sickle cell disease treatment maker Global Blood Therapeutics and bought Arena Pharmaceuticals for another $6.7 billion.