Pfizer Clears Required Regulatory Hurdles To Complete $43B Seagen Acquisition
Portfolio Pulse from Vandana Singh
Pfizer Inc has received all necessary regulatory approvals to complete its $43 billion acquisition of Seagen Inc. To address FTC concerns, Pfizer agreed to donate Bavencio royalties to the American Association for Cancer Research. Pfizer will reorganize into three divisions, with the Pfizer Oncology Division integrating oncology operations from both companies. Merck KGaA regained rights to Bavencio, replacing profit share with a 15% royalty to Pfizer. Pfizer's Angela Hwang will leave the company, and the new structure will be effective January 1, 2024. Pfizer will provide financial guidance for 2024 in an upcoming webcast.
December 12, 2023 | 6:04 pm
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NEUTRAL IMPACT
Merck KGaA regained exclusive worldwide rights to develop Bavencio and will pay a 15% royalty to Pfizer on net sales.
While the regaining of Bavencio rights is a positive development for Merck KGaA, the obligation to pay a 15% royalty to Pfizer may offset some of the financial benefits. The impact on the stock price is likely to be neutral in the short term.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
Pfizer completes $43B acquisition of Seagen, restructures into three divisions, and donates Bavencio royalties to address FTC concerns. Angela Hwang to leave Pfizer.
The completion of the acquisition is a significant milestone for Pfizer and is likely to be viewed positively by investors. The restructuring could lead to increased efficiency and focus within the company. The donation of Bavencio royalties demonstrates corporate responsibility and may improve public perception.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Seagen to be acquired by Pfizer for $43 billion, with the deal receiving all necessary regulatory approvals.
Seagen's acquisition by Pfizer is a transformative event for the company and its shareholders. The deal's completion is likely to have a positive impact on Seagen's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100