Seagen's $43B Deal To Double Pfizer's Early-Stage Oncology Pipeline, Seagen Says Is Right Step

Pfizer Inc PFE has agreed to acquire Seagen Inc SGEN for $229 in cash per Seagen share for a total enterprise value of $43 billion.
"Pfizer is deploying its financial resources to advance the battle against cancer, a leading cause of death worldwide with a significant impact on public health," said Dr. Albert Bourla, Pfizer Chairman & CEO.
As per a Wall Street Journal report, the companies were in early talks with a deal valuing over $30 billion in February.
Related: Analyst Cautions Investors On Overreacting To 'Early-Stage' Pfizer/Seagen Discussions.
Seagen expects to generate approximately $2.2 billion of revenue in 2023, representing 12% Y/Y growth, from its four in-line medicines, royalties, and collaboration and license agreements.
Pfizer believes Seagen could contribute more than $10 billion in risk-adjusted revenues in 2030, with significant potential growth beyond 2030.
The proposed combination with Seagen would double Pfizer's early-stage oncology clinical pipeline.
Seagen's portfolio includes four approved medicines across solid tumors and hematologic malignancies, including three antibody-drug conjugate (ADCs)-Adcetris (brentuximab vedotin), Padcev (enfortumab vedotin), and Tivdak (tisotumab vedotin).
The company also commercializes Tukysa (tucatinib).
Pfizer expects to finance the transaction substantially through $31 billion of new, long-term debt and the balance from a combination of short-term financing and existing cash.
The transaction is expected to be neutral to slightly accretive to adjusted EPS in Q3 to Q4 post-close.
Pfizer expects to achieve nearly $1 billion in cost efficiencies in the third full year after the completion of the transaction.
The companies expect to complete the transaction in late 2023 or early 2024.
Price Action: SGEN shares are up 15.9% at $200, and PFE shares are down 1.73% at $38.71 during the premarket session on the last check Monday.

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