OAN Geraldyn Berry
UPDATED 11:11 AM – Monday, March 13, 2023
Pfizer is said to be investing approximately $43 billion to advance its research into new cancer medicines that target tumor cells while protecting surrounding healthy tissue.
On Monday, Pfizer declared that it would buy each share of Seagen Inc. for $229 in cash. Then, according to Pfizer Chairman and CEO Albert Bourla, the biotech medication researcher will be allowed to “continue developing,” albeit with more resources than it would have had on its own.
“We think this really changes dramatically the oncology presence of Pfizer, makes it one of a kind,” Bourla said.
Seagen Inc., situated in Bothell, Washington, specializes in working with the antibody-drug conjugate (ADC) technology. Monoclonal antibodies, a class of proteins created in labs, are used in its main products to target cancer cells and deliver cancer-curing medications while preserving healthy tissue.
There are four products from Seagen also available in addition to having a pipeline of medicines that are in development, some of which could be used to treat advanced breast cancer and a specific type of lung cancer.
Adcetris, Seagen’s best-selling drug, addresses lymph system malignancies. Last year, it made $839 million in sales, a 19% rise from the year before.
The breast and colorectal cancer medication Tukysa was developed, manufactured, and sold by Seagen in a partnership with Pfizer’s Array BioPharma. For Seagen, it generated revenues of $353 million the previous year.
Pfizer announced on Monday that it will primarily finance Seagen with $31 billion in new, long-term debt.
Boards from both firms have unanimously endorsed the agreement. Regulators must still review it, though, and Seagen shareholders must consent.
The deal is anticipated to be finished by the companies in late 2023 or early 2024.
