In December 2023, after the European Commission approved the acquisition in October 2023, one of the biggest pharmaceutical companies Pfizer Inc. (NYSE: PFE) acquired the global biotechnology company Seagen Inc. (NASDAQ: SGEN) to “Reimagining the Future of Cancer” after the completion of other closing transactions. Lately there’s been a rush from pharma companies to bring breakthroughs for the cure of cancer and Pfizer didn’t lag behind and made a significant investment with the world-leader in antibody-drug conjugates (ADCs) Seagen. The acquisition was set for $229 in cash per share, totalling around $43 billion. As the CEO Dr. Albert Bourla stated this appropriation will drive a notable growth and will contribute to achieve short- and long-term financial goals.
Pfizer is quoted in the New York Stock Exchange, the latest update was February 22nd 2024, the stock price is $27.55 with a volume of 29.04 millions and a change of -$0.12 (percentage of -0.43%). Revenues for FY 2023 were $58.8 billion, registering a growth of 7% (in line with the expected growth of 6-8%).
Saegen’s stock last update was on December 13th 2023, the last day before the acquisition the stock price is $228.74 with a volume of 20.08 millions and a change of -$0.16 (percentage -0.07%). Accounting for revenues up to September 30th, 2023 total revenues were $1,772 million compared to the $1,434 million of 2022 primarily driven by growth of net product sales.
Pfizer’s Fourth Quarter 2023 Earnings Teleconference from January 30th, 2024 states as one of 2024 key priorities is to “Achieve World-Class Oncology Leadership”: this is done through Saegen acquisition which doubles the size of Pfizer’s oncology pipeline other than enhance the company’s top-line growth. As 2024 financial guidance the revenues expected by the Seagen Impact are $3.1 billion.
A vision-sharing event on the new Pfizer Oncology Division will take place on February 29th during the Oncology Innovation Day.
For shareholders, the terms of the merger are:
- Without any action on the part of the holders of any common shares the par value is $0.01 per share;
- Merger Sub Common Shares are converted and become a fully paid share;
- Common Shares owned by the Company as treasury shares and owned by Parent or Merger Sub are cancelled;
- Common Shares are converted into the right to receive cash for $229.00 (Merger Consideration), but after the payment they will be extinguished;
- Holders of a certificate share or book-entry share will cease to have any right.
In conclusion, the acquisition of Saegen by Pfizer is a brilliant opportunity for the latter to grow in the cancer treatment area of health, and a great way for Saegen to increase their potential now linked to the billionaire pharmaceutical company.
Author: Giorgia Mentasti