Pfizer to acquire Medivation
Pfizer Inc. and Medivation, Inc. announced
that they have entered into a definitive merger agreement under which Pfizer will
acquire Medivation, a biopharmaceutical company focused on developing and
commercializing small molecules for oncology, for $81.50 a share in
cash for a total enterprise value of approximately $14 billion.
“The
proposed acquisition of Medivation is expected to immediately accelerate
revenue growth and drive overall earnings growth potential for Pfizer,”
said Ian Read, chairman and chief executive officer, Pfizer. “The addition of Medivation will strengthen
Pfizer’s Innovative Health business and accelerate its pathway to a leadership
position in oncology, one of our key focus areas, which we believe will drive
greater growth and scale of that business over the long-term. This transaction
is another example of how we are effectively deploying our capital to generate
attractive returns and create shareholder value.”
Medivation’s portfolio includes XTANDI®
(enzalutamide), an androgen receptor inhibitor that blocks multiple
steps in the androgen receptor signaling pathway within the tumor cell. XTANDI
is the leading novel hormone therapy in the United States today and generated
approximately $2.2 billion in worldwide net sales over the past four quarters,
as recorded by Astellas Pharma Inc., with whom Medivation entered an agreement in
2009 to develop XTANDI globally and commercialize jointly in the U.S. Since its
approval for advanced metastatic prostate cancer by the U.S. Food and Drug
Administration in 2012, XTANDI has treated 64,000 men to date in the U.S.
alone. Medivation and Astellas have built a robust development program for
XTANDI, including two Phase 3 studies in non-metastatic prostate cancer and
another Phase 3 study in hormone-sensitive prostate cancer. It is also being
further developed in Phase 2 studies for the potential treatment of advanced
breast cancer and hepatocellular carcinoma.
In addition, Medivation has a promising,
wholly-owned, late-stage
oncology pipeline, which includes two development-stage oncology assets,
talazoparib and pidilizumab. Talazoparib, currently in a Phase 3
study for the treatment of BRCA-mutated breast cancer, has the potential to be
a highly potent PARP inhibitor and could be efficacious across several
additional tumors. Pidilizumab is an immuno-oncology (IO) asset being developed
for diffuse large B-cell lymphoma and other hematologic malignancies and has
the potential to be combined with IO therapies in Pfizer’s portfolio.
“We believe the combination with Pfizer is
the right next step in our growth trajectory and is a testament to the passion
and dedication by which the Medivation team has delivered on our mission to
profoundly transform patients’ lives through medically innovative therapies,”
said David Hung, M.D., founder, president and CEO of Medivation. “This
compelling transaction will deliver significant and immediate value to our
stockholders and provides new opportunities for our employees as part of a
larger company. We believe that Pfizer is the ideal partner to extend the reach
of our blockbuster XTANDI franchise and take our promising, late-stage assets –
talazoparib and pidiluzimab – to their next stages of development so that they
can be made available to patients as quickly as possible.”
“The proposed acquisition of Medivation will
build upon Pfizer’s success with our IBRANCE® (palbociclib) launch in HR+/HER2-
metastatic breast cancer and with our strong immuno-oncology portfolio, and
will transform Pfizer into a leading oncology company,” said Albert Bourla,
group president, Pfizer Innovative Health. “IBRANCE and XTANDI are anchor
brands in breast and prostate cancer respectively, giving Pfizer leadership in
two hormone-driven cancers. Similar to IBRANCE in the breast cancer setting,
XTANDI is being explored for its potential to move from metastatic prostate
cancer to treat earlier stages of non-metastatic prostate cancer. In addition,
Medivation’s portfolio within prostate cancer and across diverse tumors will
complement Pfizer’s broad IO portfolio. Finally, Medivation adds commercial
scale to better compete with other top tier oncology companies in advance of
the potential emergence of Pfizer’s IO pipeline expected in the next few years.
Together, we believe Pfizer and Medivation can bring the full force of our
combined research and resources to combat two of the most common cancers, as
well as speed cures and make accessible breakthrough medicines to patients,
redefining life with cancer.”
Cancer remains the second leading cause of
death in the U.S. and a “Top 10” killer worldwide. According to the American
Cancer Society, breast cancer and prostate cancer are among the top three
cancers by annual incidence in the U.S. There are several parallels between
breast and prostate cancer, including the incidence of prostate cancer in the
U.S., which is similar to that of breast cancer with approximately 280,000
cases per year.
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