Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

News Spotlights Stocks

Pfizer gets OK for $43-billion Seagen deal after donating cancer drug rights

post-img

(Reuters) – Pfizer said on Tuesday it has agreed to donate the rights of royalties from sales of cancer drug Bavencio to address concerns from U.S. antitrust regulators related to its $43-billion deal to buy Seagen.

The drugmaker said it had now received all regulatory approvals to close the deal on Thursday, about 9 months after announcing the acquisition.

Pfizer (NYSE:PFE) announced the acquisition in March as it braced for a steep fall in sales of its COVID-related products. Lower COVID product sales led the company to launch a program to cut $3.5 billion worth of job roles and other expenses.

After the deal closes, Pfizer said it would create a separate cancer drugs operation and split the rest of its commercial business into two divisions, one focused on the United States and the other on the rest of the world.

Chief Commercial Officer Angela Hwang would step down, Pfizer said, and Chief Business Innovation Officer Aamir Malik would become the commercial chief for its U.S. unit, while Alexandre de Germay will become commercial chief for the international unit.

The U.S. Federal Trade Commission sent a request for more information on the Seagen deal to the companies in July. The FTC declined to comment on Pfizer’s announcement on Tuesday.

Pfizer said it would donate the royalty rights for immunotherapy drug Bavencio to the American Association for Cancer Research.

The company in March signed away the development and commercialization rights related to Bavencio to its partner for the drug, Merck KGaA, while retaining rights to 15% royalty on net sales of the drug.

Bavencio brought in sales of $271 million for Pfizer in 2022.

Seagen’s shares rose 3.3% to $228.83 in premarket trading, close to the offer price of $229. The gap between the offer price and its shares has narrowed in recent months on easing fears of a prolonged antitrust review.

Related Post