Pfizer to acquire cancer drugmaker Seagen for $43bn in cash

American pharmaceutical and biotechnology company Pfizer has agreed to acquire cancer drugmaker Seagen (formerly Seattle Genetics) for $229 per share or $43 billion in cash, in a move to strengthen its position in the oncology space.

With the proposed acquisition, Pfizer anticipates broadening its oncology portfolio by adding Seagen’s medicines, late-stage development programs, and antibody-drug conjugate (ADC) technology.

Seagen’s portfolio includes four approved medicines across solid tumors and hematologic malignancies. These include three ADCs — Adcetris (brentuximab vedotin) for certain CD30-expressing lymphomas, including Hodgkin’s disease, Padcev (enfortumab vedotin) for metastatic urothelial cancer, and Tivdak (tisotumab vedotin) for metastatic cervical cancer.

The company also commercializes Tukysa (tucatinib) for certain HER2-positive metastatic breast and colorectal cancers.

Chris Boshoff — Pfizer Oncology and Rare Disease Chief Development Officer said: “The addition of Seagen’s world-leading ADC technology will position us at the forefront of innovative cancer care, and strongly complements our existing portfolio across both solid tumors and hematologic malignancies.

“We believe the combination of our teams, and respective areas of strength and global footprints will allow us to realize Seagen’s potential and advance even more potential breakthroughs to patients with cancer.”

Pfizer to acquire cancer drugmaker Seagen for $43bn in cash. Photo courtesy of Pfizer Inc.

The Seattle-headquartered Seagen anticipates to contribute over $10 billion in risk-adjusted revenues in 2030 and generate around $2.2 billion of revenue in 2023. The company has sites in California, Canada, Switzerland, and the European Union.

Dr Albert Bourla — Pfizer Chairman and CEO said: “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.”

Pfizer expects the transaction to yield cost synergies of approximately $1 billion in the third full year upon the completion of the deal.

The acquisition, which is subject to regulatory approvals and customary closing conditions, is likely to close in late 2023 or early 2024.