Pfizer Beats Out Sanofi to Take Medivation for $14 Billion
Monday, August 22, 2016
Posted by: Kate Oesterle
Pfizer Inc. claimed the pharmaceutical industry’s latest big prize Monday, beating out a group of rivals after months of jockeying to buy Medivation Inc. and its blockbuster cancer drug for $14 billion.
Left behind was French drugmaker Sanofi, whose aggressive and at one point hostile pursuit of Medivation helped open up the process to Pfizer, Gilead Sciences Inc. and others that were said to be involved. Pfizer will pay $81.50 a share in cash, the companies said in a statement on Monday, well above Sanofi’s initial $52.50 a share offer.
By acquiring Medivation, Pfizer gets Xtandi, a cancer drug that’s already approved for sale in the U.S. and elsewhere, and that analysts project will generate $1.33 billion in annual sales by 2020. Pfizer Chief Executive Officer Ian Read said in May that he was more interested in acquiring late-stage assets because the company already had plenty of early-stage drugs in the works.
Shares of Medivation, which closed at $67.16 on Friday, climbed 20 percent to $80.50 at 10:28 a.m. Pfizer gained 0.8 percent to $35.26, while Sanofi was up 0.4 percent to 69.98 euros in Paris.
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