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US: Pfizer to pay $14 billion for Medivation

 |  August 22, 2016

Pfizer said Monday that it had agreed to buy biotech Medivation Inc. for about $14 billion, in a move that adds one of the crown jewels of the multibillion-dollar market for cancer drugs to Pfizer’s portfolio.

The deal ends months of bidding for San Francisco’s Medivation, one of the most desired independent biotechs because it sells a leading prostate-cancer drug.

Medivation’s drug, Xtandi, already generates about $2 billion in yearly sales and has the potential to more than double, according to analysts.

Pfizer said the deal would add 5 cents to earnings in the first full year after closing and isn’t expected to affect its 2016 financial guidance. Pfizer said it plans to finance the transaction with its cash holdings.

If the deal isn’t completed, Medivation could pay Pfizer a $510 million termination fee, according to a regulatory filing.

Full Content: Fox Business

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