Pfizer to close Seagen deal this week, creates new cancer division
Reuters
Published Dec 12, 2023 07:05AM ET
Updated Dec 12, 2023 11:22AM ET
By Michael Erman and Manas Mishra
(Reuters) -Pfizer said on Tuesday it expects to close its $43 billion deal to buy cancer drugmaker Seagen later this week and plans to create a new oncology division that includes the acquisition early next year.
Pfizer (NYSE:PFE) also said Chief Commercial Officer Angela Hwang would step down, and that it will split the its commercial business, not including oncology, into two divisions, one focused on the United States and the other on the rest of the world.
In October, Pfizer slashed its full-year revenue forecast by 13% and said it will cut $3.5 billion worth of jobs and expenses due to lower-than-expected sales of its COVID-19 vaccine and treatment.
The company said it will unveil its 2024 forecast and hold a conference call on its new structure on Wednesday.
Chris Boshoff, who currently runs cancer research and development for Pfizer, will lead the new oncology division and report directly to CEO Albert Bourla.
Pfizer's Chief Business Innovation Officer Aamir Malik will head up the U.S. commercial unit, while Alexandre de Germay will become commercial chief for the international unit.
Pfizer said its antitrust waiting period for the Seagen deal has expired, and it has received all necessary regulatory approvals to close the deal on Thursday, about 9 months after announcing the acquisition.
The New York-based drugmaker said it agreed to donate the rights of royalties from sales of cancer drug Bavencio to the American Association for Cancer Research to address concerns from U.S. antitrust regulators.
The company in March signed away the development and commercialization rights to Bavencio to its partner for the drug, Merck KGaA, while retaining rights to a 15% royalty on net sales of the drug.
Bavencio brought in sales of $271 million for Pfizer in 2022.
Pfizer announced the acquisition in March as it braced for the steep fall in sales of its COVID products.
The U.S. Federal Trade Commission (FTC) sent a request for more information on the Seagen deal to the companies in July. The FTC declined to comment on Pfizer's announcement on Tuesday.
Seagen shares were up 3.3% at $228.84, close to the offer price of $229. Pfizer shares were off less than 1% at $28.53.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.