The US-headquartered pharma major Pfizer Inc has entered into an agreement to acquire Medivation Inc, a biopharmaceutical company focused on developing and commercializing small molecules for oncology, for a total enterprise value of approximately $ 14 billion.
• The merger will give a boost to Pfizer’s consolidation effort through a series of acquisitions, especially after its bid to take over Allergan Plc in a $150 billion deal late last year fell apart when the Obama administration prevented the proposed combination with new rules.
• 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.
• This transaction is another example of how we are effectively deploying our capital to generate attractive returns and create shareholder value.
• Pfizer and Medivation can bring the full force of our combined research and resources to combat two of the most common cancers, as well as speed cures and make accessible breakthrough medicines to patients, redefining life with cancer.
• Cancer remains the second leading cause of death in the US and a top 10 killer worldwide. According to the American Cancer Society, breast cancer and prostate cancer are among the top three cancers by annual incidence in the US.
• There are several parallels between breast and prostate cancer, including the incidence of prostate cancer in the US, which is similar to that of breast cancer .