Pfizer to buy Medivation in $14 billion deal

Before you go, we thought you'd like these...
Pfizer near deal to buy Medivation

Aug 22 (Reuters) - Pfizer Inc said on Monday it would buy U.S. cancer drug company Medivation Inc in a deal valued at about $14 billion to boost its oncology portfolio.

Pfizer will offer Medivation shareholders $81.50 per share in cash, a substantial premium to Sanofi SA's first offer of $52.50 made in April that forced Medivation to put itself up for sale.

Shares of Medivation, best known for its prostate cancer drug Xtandi, were up 19 percent at $80.01 in premarket trade, just shy of the offer price.

Sanofi later raised its offer to $58 per share in cash and $3 per share in the form of a contingent value right relating to the sales performance of Talazoparib, a breast cancer drug under development.

RELATED: Pfizer and Allergan merge in late 2015

5 PHOTOS
Pfizer/Allergan merger
See Gallery
Pfizer/Allergan merger
Signage is displayed at the Pfizer Inc. Kendall Square Research and Development Center in Cambridge, Massachusetts, U.S., on Monday, Nov. 23, 2015. Pfizer Inc. and Allergan Plc agreed to combine in a record $160 billion deal, creating a drugmaking behemoth called Pfizer Plc with products from Viagra to Botox and a low-cost tax base. Photographer: Scott Eisen/Bloomberg via Getty Images
People walk past Pfizer World Headquarters, Monday, Nov. 23, 2015 in New York. Pfizer and Allergan will join in a $160 billion deal to create the world's largest drugmaker. (AP Photo/Mark Lennihan)
Signage is displayed at an Allergan Plc office in Medford, Massachusetts, U.S., on Monday, Nov. 23, 2015. Pfizer Inc. and Allergan Plc agreed to combine in a record $160 billion deal, creating a drugmaking behemoth called Pfizer Plc with products from Viagra to Botox and a low-cost tax base. Photographer: Scott Eisen/Bloomberg via Getty Images
Ian Read, chairman and chief executive officer of Pfizer Inc., left, and Brent Saunders, president and chief executive officer of Allergan Plc, stand for a photograph in front of Pfizer headquarters in New York, U.S., on Monday, Nov. 23, 2015. Pfizer Inc. and Allergan Plc agreed to combine in a record $160 billion deal, creating a drugmaking behemoth called Pfizer Plc with products from Viagra to Botox and a low-cost tax base. Photographer: Michael Nagle/Bloomberg via Getty Images
The Allergan logo appears above a trading post on the floor of the New York Stock Exchange, Monday, Nov. 23, 2015. Pfizer and Allergan are joining in the biggest buyout of the year, a $160 billion stock deal that will create the world's largest drugmaker. (AP Photo/Richard Drew)
of
SEE ALL
BACK TO SLIDE
SHOW CAPTION +
HIDE CAPTION

However, Medivation said in July it had agreed to share confidential information with potential buyers after Sanofi agreed to drop a campaign to oust Medivation's board of directors.

Reuters had reported that Pfizer, Merck & Co Inc, Celgene Corp and Gilead Sciences Inc had submitted expressions of interest to acquire Medivation.

Pfizer said it expects to complete the acquisition, which was approved by boards of both companies, in the third or the fourth quarter.

Pfizer's financial advisers were Guggenheim Securities and Centerview Partners, with Ropes & Gray LLP providing legal counsel .

J.P. Morgan Securities and Evercore were Medivation's financial advisers, while Cooley LLP and Wachtell, Lipton, Rosen & Katz served as its legal advisers.

Read Full Story

People are Reading