27 October 2016
Pfizer seeks to gain access to Medivation's anti-cancer drugs. Photo: Bloomberg
Pfizer seeks to gain access to Medivation's anti-cancer drugs. Photo: Bloomberg

Pfizer nears deal to acquire Medivation for close to US$14 bln

Pfizer Inc. is in advanced talks to acquire US cancer drug company Medivation Inc. for close to US$14 billion, as it seeks to boost its oncology portfolio, people familiar with the matter said on Sunday.

Pfizer has agreed to pay a little more than US$80 per share for Medivation, a substantial premium to the US$52.50 offer for Medivation that France’s Sanofi SA made in April, which eventually resulted in the company putting itself up for sale, Reuters reports, citing the unnamed sources.

Medivation shares ended trading in New York on Friday at US$67.16.

Reuters reported earlier this week that Pfizer, Sanofi, Merck & Co. Inc.,  Celgene Corp., and Gilead Sciences Inc. had submitted expressions of interest to acquire Medivation.

The strong acquisition interest in the San Francisco-based company illustrates how demand for new cancer treatments, which can possibly add years to patients’ lives, could spell billions of dollars in revenue to the companies that own them, the news agency said.

Pfizer has so far prevailed in the auction for Medivation and could announce a deal as early as Monday, although the negotiations still could fall apart at the last minute, the sources said.

The deal is expected to be paid for by Pfizer in its entirety, or at least mostly with cash, one of the people said.

Pfizer and Medivation declined to comment.

The Financial Times first reported on Pfizer nearing a deal for Medivation on Sunday.

Pfizer, whose oncology offerings include breast cancer drug Ibrance and several other promising immuno-oncology products, is now set to get access to Medivation’s successful prostate cancer drug Xtandi, as well as Talazoparib, another breast cancer treatment under development by Medivation.

Medivation earlier this year rejected two acquisition offers from Sanofi, the latest for US$58 per share in cash and US$3 per share in the form of a contingent value right relating to the sales performance of Talazoparib.

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