Pfizer to purchase Seagen in $43 billion all-cash deal, cancer biotech’s stock pops 20%

Pfizer Inc.
PFE,
-0.18%
plans to acquire cancer biotechnology company Seagen Inc.
SGEN,
-0.59%
in a deal with a $43 billion enterprise value, the companies announced Monday morning. Pfizer intends to pay $229 a share in cash for Seagen, which discovers and develops cancer drugs. Seagen shares were up more than 21% in premarket trading Monday, which would imply a stock price of about $210 if the gains carry through to the regular session. “Together, Pfizer and Seagen seek to accelerate the next generation of cancer breakthroughs and bring new solutions to patients by combining the power of Seagen’s antibody-drug conjugate (ADC) technology with the scale and strength of Pfizer’s capabilities and expertise,” Pfizer Chief Executive Albert Bourla said in a release. He called oncology “the largest growth driver in global medicine” and said that the acquisition of Seagen would “enhance Pfizer’s position in this important space and contribute meaningfully to the achievement of Pfizer’s near- and long-term financial goals.” The boards of both companies have unanimously approved the deal. The Wall Street Journal reported on the potential for this merger in late February. The companies expect the deal to close in late 2023 or early 2024.