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How many billion did Pfizer spending to acquire Seagen on 13 March 2023?
A)
$43 billion
B)
$49 billion
C)
$54 billion
D)
$60 billion

Correct Answer :   $43 billion


Pfizer Inc (PFE.N) on Monday (13th March 2023) struck a $43 billion deal to acquire Seagen Inc (SGEN.O) and its targeted cancer therapies as it braces for a steep fall in COVID-19 sales and generic competition for some top-selling drugs.

Seagen marks Pfizer's largest purchase in a string of recent acquisitions utilizing a once-in-a-lifetime cash windfall from its COVID-19 vaccine and treatment. It will add four approved cancer therapies with combined sales of nearly $2 billion in 2022.

Washington-based Seagen is a pioneer of antibody-drug conjugates, which work like "guided missiles" designed to destroy cancer while sparing healthy cells.

Seagen's shares were trading up more than 16% at $200.93 on Monday (13th Mar 2023), well below Pfizer's offer price of $229, signaling investor concern over a possible prolonged antitrust review. Pfizer shares were nearly 3% higher.

Pfizer's bid represents a 32.7% premium to Seagen's closing price on Friday.

The Federal Trade Commission (FTC) clearance is sort of the open question at this point with regards to the deal, said Needham & Co analyst Ami Fadia, pointing to an overlap in bladder cancer treatments as an area the FTC could look into.

However, Fadia said there was less than a 50% chance of the FTC challenging the deal in court.

Pfizer, on a conference call to discuss the planned acquisition, acknowledged that antitrust regulators are likely to closely review the deal due to its size, but said the companies expect to be able to complete the transaction in late 2023 or early 2024...

Source : Reuters

Published On : March 15, 2023
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