Pfizer Wins the Medivation Auction, Will Acquire Company for $14 Billion

According to the Financial Times, drug giant Pfizer Inc. (NYSE:PFE) is set to acquire biotech standout Medivation Inc (NASDAQ:MDVN) for $14 billion, in a move that would heavily bolster Pfizer’s cancer treatment portfolio.

From the report (subscription required):

People close to the talks said a deal between Pfizer, the world’s second-largest drugmaker, and Medivation could be announced as early as Monday, though they cautioned that the two sides were in the process of finalising their agreement.

Pfizer, which has a market value of $212bn, is planning to pay a premium of about one-third to Medivation’s closing share price of $67.16 at the end of last week, valuing the company’s equity at more than $14bn.

Pfizer defeated a number of suitors for Medivation including Celgene, Gilead and French drugmaker Sanofi, which had been pursuing the company for months.

Both companies declined to comment on the takeover, as talks are still ongoing.

French drugmaker Sanofi cannot be happy about the deal, considering how strongly it’s been pursuing Medivation over the last several months. The company originally made a $9.3 billion takeover offer back in April, which Medivation declined. Sanofi later attempted a hostile takeover, which also failed.

Medivation’s drug portfolio includes the most popular prostate cancer drug in the world, called Xtandi. That drug alone is estimated to drive $5.7 billion in annual sales by the year 2020.

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Pfizer shares were down slightly in premarket trading Monday to $34.95. PFE has gained 8.36% year-to-date, narrowly beating the return of the S&P 500 during the same period.

Update: Pfizer has confirmed the report, and will purchase MDVN for $81.50 per share.

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