The deal is expected to allow for combining potential across the pipelines of both firms and will make use of Pfizer’s capabilities in protein engineering and medicinal chemistry for advancing Seagen’s ADC technology to unlock possible novel target combinations and next-generation biologics
Pfizer has agreed to acquire Seagen, a US-based biotechnology company engaged in developing cancer therapies, in an all-cash deal worth $43bn.
As per the terms of the deal, Pfizer will pay $229 per share to the shareholders of the Nasdaq-listed Seagen.
The transaction has been approved unanimously by the boards of directors of both companies.
Seagen CEO David Epstein said: “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 provide new opportunities for our colleagues as part of a larger science-driven, patient-centric, global company.”
Seagen is said to be a pioneer in antibody-drug conjugate (ADC) technology. One-third of 12 approved ADCs by the US Food and Drug Administration (FDA) are claimed to use the company’s technology.
Its portfolio features four approved medicines covering solid tumours and haematologic malignancies. These include three ADCs, namely ADCETRIS (brentuximab vedotin), PADCEV (enfortumab vedotin), and TIVDAK (tisotumab vedotin).
Another approved drug of Seagen is TUKYSA (tucatinib).
All the four drugs are going through clinical development programmes for potential new types of tumours or expanded indications in earlier lines of therapy, with catalysts anticipated annually through 2027, said Pfizer.
Seagen’s pipeline has 11 new molecular entities. A majority of them have the potential of treating large patient populations, with all underpinned by global commercial rights.
The deal is also likely to allow for combining potential across the pipelines of both firms and will utilise Pfizer’s capabilities in protein engineering and medicinal chemistry for advancing Seagen’s ADC technology to unlock possible novel target combinations and next-generation biologics.
Pfizer chairman and CEO Albert Bourla 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 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.”
The deal is anticipated to close in late 2023 or early next year, based on the meeting of customary conditions such as approval of Seagen’s shareholders and regulatory approvals.
Last year, Seagen reportedly drew interest from Merck with the latter pursuing to acquire it for a price of over $40bn. However, both parties could not arrive at an agreement.