USA —Pfizer has agreed to acquire Seagen, a Seattle-based biotechnology company that develops novel tumor-killing medicine, for US$43 billion in one of the biggest deals in the biotech industry in recent years.
This acquisition will unite Pfizer with Seagen and give it control over Seagen’s cancer treatments, including its top-selling lymphoma medicine Adcetris.
The acquisition also brings an end to a prolonged mergers and acquisition (M&A) saga, in which multiple buyers have tried to acquire Seagen without success.
Pfizer outbid Merck, which was reported to be in talks for a deal at or over US$40 billion in July 2022, but the negotiations fell apart over the price.
The acquisition is Pfizer’s largest since buying Wyeth in 2009 and is the biggest in the drug industry since AbbVie’s US$63 billion buyout of Allergan in 2019.
Seagen’s expertise in antibody-drug conjugate technology has yielded three new drug approvals in the past three years, and its pipeline of cancer treatments includes the top-selling lymphoma medicine Adcetris.
Seagen’s appeal to large drugmakers lies in its antibody-drug conjugates (ADCs), which utilize antibodies linked to potent cancer-killing molecules to better target tumors with fewer side effects.
Four of the 12 ADCs currently on the market use Seagen’s technology, according to Pfizer’s press release.
The industry and Wall Street have been closely watching how Pfizer would utilize the tens of billions of dollars it reaped in revenue from its Covid-19 product.
The acquisition of Seagen is the latest addition to Pfizer’s dealmaking activity in 2022, which also included the US$11.6 billion acquisition of migraine drugmaker Biohaven and the US$5.4 billion acquisition of sickle cell therapy maker Global Blood Therapeutics.
The buyout extends Pfizer’s position in oncology, which generated US$12.1 billion in sales in 2022, according to the New York drugmaker. Meanwhile, Seagen is expected to bring in US$2.2 billion in sales this year.
Pfizer’s CEO, Albert Bourla, stated in a press release that “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.”
Large pharmaceutical companies have shown interest in antibody-drug conjugates (ADCs) recently, with Merck investing US$1 billion in Seagen in 2020 for rights to its experimental breast cancer drug and approved treatment Tukysa.
Gilead also paid US$21 billion to acquire Immunomedics and its ADC drug for breast cancer. AstraZeneca has made significant investments in two ADCs developed by Daiichi Sankyo, including Enhertu, which has shown promise in clinical trials.
Pfizer expects Seagen’s medicines to generate over US$10 billion in annual revenue by 2030.
The acquisition of Seagen by Pfizer highlights the ongoing trend of M&A activity within the biotech industry, as companies seek to expand their portfolios and stay competitive in a rapidly evolving landscape.
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