UPDATE: Pfizer announced Monday a definitive merger agreement to acquire Medivation for $81.50 per share in cash, or approximately $14 billion, boosting its oncology portfolio with the addition of the prostate cancer therapy Xtandi (enzalutamide).
Sources previously suggested that Pfizer was close to an agreement to buy Medivation for about $14 billion, representing a premium of around one-third to Medivation’s closing share price on August 19.
Under the deal Pfizer would gain Xtandi, which is partnered with Astellas. Analysts project that global sales of the drug could reach $5.7 billion annually by 2020. Additionally, Medivation is developing talazoparib, which Blair & Co. analyst Katherine Xu said is the most potent medicine in the PARP class, estimating annual peak sales of up to $3 billion.
Last month, Medivation rejected Sanofi's latest unsolicited takeover proposal, valued at $58 per share, plus a contingent value right valued at a maximum of $3 a share. At that time, Medivation indicated that it has entered into confidentiality agreements with a "number of parties that have expressed interest in exploring a potential transaction." Reports suggested that Amgen, Celgene and Gilead Sciences were among the other drugmakers weighing bids for the company.
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