Pfizer Inc. has agreed to buy drug firm Medivation for US$14 billion in cash, trumping several other bidders, in a deal that will help the pharma giant boost its oncology portfolio.
The company offered US$81.50 per share for Medivation, whose products include the blockbuster prostate cancer drug Xtandi, Reuters reported Monday.
The offer represents a 55-percent premium to an initial bid made by French firm Sanofi in April, which pushed the San Francisco-based Medivation to put itself up for sale.
Pfizer said the acquisition will give an immediate boost to its earnings.
The deal comes four months after Pfizer and Ireland-based Allergan scrapped a US$160 billion merger.
The Medivation deal marks a shift in Pfizer’s M&A strategy from lowering taxes – the rationale behind the failed Allergan tax inversion deal – to strengthening its lineup of branded drugs, Reuters noted.
Medivation shares jumped nearly 20 percent to close at US$80.42, just shy of Pfizer’s offer price, following the acquisition announcement.
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