Pfizer’s proposed $43 billion takeover of Seagen Inc. is currently under the microscope of the Federal Trade Commission (FTC). Amidst an industry-wide string of attempted mergers and acquisitions, the FTC has launched an extensive antitrust review of the high-profile deal.
Seagen claimed that both companies have been served a “second request” seeking additional information to fuel the review. Originally, the filing was withdrawn in June, but Pfizer and Seagen then resubmitted it to grant the FTC more time to conduct their initial evaluation.
“We continue to expect that the acquisition of Seagen by Pfizer will be completed in late 2023 or early 2024,” said Seagen in a regulatory filing, reported Reuters.
Yet even this optimistic prediction has been clouded by the scrutiny of the FTC blocking Amgen’s attempted purchase of Horizon Therapeutics for $27.8 billion, leaving investors on edge.
Commenting on the acquisition, Alicia Dubuc of the FTC said: “We recognize the need to examine with particular scrutiny proposed mergers that may result in lessening of competition and higher prices for consumers. We remain diligent in protecting the American public from these potential harms.”
The Pfizer-Seagen deal is being viewed as an indicator of the Federal Trade Commision’s attitude towards mergers and acquisitions amongst biopharmaceutical firms. As investors anxiously await the results of the review, it will likely set a long-term trend across the industry.