The European Commission has unconditionally approved the transaction, concluding that the proposed transaction would not significantly reduce competition in the markets within the EEA, or have a negative impact on prices
Logo outside Pfizer’s headquarters. (Credit: Pfizer Inc.)
US-based pharmaceutical company Pfizer has secured the European Commission (EC) approval for its proposed $43bn acquisition of cancer therapeutics company Seagen.
In March this year, the US drugmaker signed an agreement to acquire Seagen, which was unanimously approved by the boards of directors of both companies.
The EC concluded that the proposed transaction would not significantly reduce competition in the 27 countries of the European Union (EU) or have a negative impact on the prices.
Seagen is a biotechnology company, engaged in developing and commercialising oncology therapies, primarily antibody-drug conjugates (ADCs).
Pfizer has a portfolio of oncology therapeutics, comprising several brands of biologics, small molecules, immunotherapies, and biosimilars across a wide range of cancers.
The EC said that the two companies’ products for breast, bladder, colorectal, cervical and lung cancers, along with lymphoma and leukaemia, overlap in the European Economic Area (EEA).
Through the acquisition of Seagen’s ADCs technology, Pfizer aims to diversify its portfolio and advance the development and commercialisation of Seagen’s ADCs drugs.
The EC was notified about the proposed transaction on 14 September 2023 and was requested to review the transaction pursuant to Article 4(5) of the EU Merger Regulation.
The commission, based on its market investigation, said that the proposed merger would not significantly reduce competition in the markets within the EEA.
Also, the transaction would not have a negative impact on prices, given that the companies’ products are differentiated and the markets for cancer therapies are adequately competitive.
The EC concluded that the proposed merger would not raise competition concerns and has unconditionally approved the transaction.
Last month, Nurix Therapeutics entered a strategic collaboration with Seagen to develop a new class of medicines, Degrader-Antibody Conjugates (DACs), for use in cancer.
Under the collaboration, Nurix will receive an upfront payment of $60m, along with research, development, regulatory, and commercial milestone payments totalling up to $3.4bn.