The companies have received all required regulatory approvals to complete the deal, the largest for the sector in the past three years and the biggest for the hot antibody-drug conjugate market.
Pictured: Sign at Pfizer’s headquarters in New York/iStock, JHVEPhoto
Pfizer’s $43 billion acquisition of cancer and antibody-drug conjugate biotech Seagen has received all regulatory approvals and will close on Dec. 14, the biopharma giant announced on Tuesday.
Pfizer’s acquisition of Seagen was rumored to be in the works in February 2023, with the announcement finally dropping in March and beating Merck for the coveted prize The deal is the largest for the sector in the past three years and the biggest for the hot antibody-drug conjugate market.
Regulators have been examining the deal throughout the year. Over the summer, the FTC requested more information from Pfizer for the agreement, with an SEC document disclosing that the FTC’s information request further extended the waiting period. In October, the deal was approved by European regulators.
In response to Federal Trade Commission concerns, Pfizer has decided to “irrevocably” donate the rights of royalties from sales of Bavencio in the U.S. to the American Association for Cancer Research.
“This unrestricted donation will support AACR in its mission to prevent and cure cancer through research, education, communication, collaboration, science policy, and funding for cancer research,” according to Pfizer’s announcement.
Bavencio (avelumab) is the drug that is indicated to treat advanced or metastatic urothelial carcinoma that has spread and can’t be removed surgically. According to Pfizer’s third-quarter 2023 financials, the drug pulled in $18 million in the previous quarter.
“The completion of all regulatory reviews in association with the Seagen acquisition supports our belief that this transaction is good for patients in the battle against cancer,” Pfizer CEO Albert Bourla said in a statement. “With the anticipated Seagen closing in the coming days, Pfizer has announced changes to the company’s commercial structure designed to maximize the impact of this transaction and enhance our commercial execution across all the company’s therapeutic areas.”
With the deal now in the clear with regulators and the company facing a looming oncology patent cliff, Pfizer announced it would change Seagen’s commercial organization. The biopharma giant will create an end-to-end business dubbed the Pfizer Oncology Division. The plan will bring tougher oncology and R&D operations from both countries and will be led by Chris Boshoff, who will become the chief oncology officer and executive vice president.
Pfizer will also split its non-oncology commercial organization into two separate divisions. The Pfizer U.S. commercial division will be headed up by Aamir Malik, whose title will be chief U.S. Commercial Officer. The other division will be the Pfizer International Commercial Division, led by Alexandre de Germay, who will be the top international commercial officer. This new business structure will go into effect on Jan. 1, 2024.
Tyler Patchen is a staff writer at BioSpace. You can reach him at tyler.patchen@biospace.com. Follow him on LinkedIn.
