Pfizer to acquire Medivation for $14bn

Medivation is focused on the development and commercialization of medically innovative therapies to treat severe diseases that have limited treatment options.

The company’s portfolio includes Xtandi (enzalutamide) capsules that are indicated to treat metastatic castration-resistant prostate cancer by blocking multiple steps in the androgen receptor signaling pathway within the tumor cell.

The US Food and Drug Administration approved Xtandi for advanced metastatic prostate cancer in 2012. It has so far treated 64,000 men in the US alone.

The development program for Xtandi includes two phase 3 studies in non-metastatic prostate cancer and another phase 3 trial in hormone-sensitive prostate cancer.

It is also being evaluated in phase 2 studies for the potential treatment of advanced breast cancer and hepatocellular carcinoma.

Medivation also has a late-stage oncology pipeline, which includes two development-stage oncology assets, talazoparib and pidilizumab.

As per the merger deal, a subsidiary of Pfizer will start a cash tender offer to buy all of the outstanding shares of Medivation common stock for $81.50 per share.

The closing of the tender offer is subject to customary closing conditions, including US antitrust clearance. Pfizer expects to complete the deal in the third or fourth quarter of this year.

Pfizer chairman and CEO Ian Read said: “The proposed acquisition of Medivation is expected to immediately accelerate revenue growth and drive overall earnings growth potential for Pfizer.

“The addition of Medivation will strengthen Pfizer’s Innovative Health business and accelerate its pathway to a leadership position in oncology, one of our key focus areas, which we believe will drive greater growth and scale of that business over the long-term.”

Image: Pfizer has agreed to acquire Medivation for about $14bn. Photo: courtesy of stockimages at FreeDigitalPhotos.net.