(Tiper Stock Exchange) – PfizerUS pharmaceutical giant, has signed an agreement to acquire Seagena biotechnology company specializing in transformative cancer drugs, for $229 cash per Seagen share, or a total enterprise value of $43 billion. The boards of directors of both companies have unanimously approved the transaction.
Pfizer expects to finance the transaction essentially through $31 billion of new long-term debt and the balance from a combination of short-term funding and existing cash.
“Pfizer is using its financial resources to advance the battle against cancer, a leading cause of death worldwide with a significant impact on public health,” he said. Albert Bourla, CEO by Pfizer. “L’oncology continues to be the biggest driver of growth in global medicine and this acquisition will strengthen Pfizer’s position in this important space and contribute significantly to the achievement of Pfizer’s short- and long-term financial goals,” he added.
Seagen expects to generate approximately $2.2 billion in revenue in 2023, or 12% year-over-year growth, from its four-drug in-line, royalties, and collaboration and licensing agreements. Pfizer believes Seagen could contribute more than $10 billion in risk-adjusted revenues in 2030with potential for significant growth beyond 2030.