Pfizer To Acquire Seagen For $229/shr

Pfizer Inc. (PFE) and Seagen Inc. (SGEN) have entered into a merger agreement under which Pfizer will acquire Seagen, a global biotechnology company that discovers, develops and commercializes cancer medicines, for $229 per Seagen share for a total enterprise value of $43 billion. The companies expect to complete the merger in late 2023 or early 2024.

Seagen expects to generate approximately $2.2 billion of revenue in 2023, from its four in-line medicines, royalties and collaboration and license agreements. Pfizer believes Seagen could contribute more than $10 billion in risk-adjusted revenues in 2030, with potential significant growth beyond 2030.

Pfizer expects to finance the transaction substantially through $31 billion of new, long-term debt, and the balance from a combination of short-term financing and existing cash. Pfizer expects the acquisition to be neutral to slightly accretive to adjusted earnings per share in the third to fourth full year post close. Pfizer expects to achieve nearly $1 billion in cost efficiencies in the third full year after the completion of the deal.

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