Pfizer Inc (NYSE:PFE) is reportedly closing on taking over U.S. drug giant Medivation Inc (NASDAQ:MDVN) for around $14 billion, as it try to find solutions to improve its oncology portfolio.
According to reports Pfizer Inc.(NYSE:PFE) is looking to pay over $80 per share for Medivation Inc(NASDAQ:MDVN), a significant premium to the $52.50 suggestion for Medivation that France’s Sanofi SA (SASY.PA) made in April, which ultimately resulted in the company putting itself up for sale. Medivation shares finished trading in New York on Friday at $67.16.
Reuters posted earlier this week that Pfizer, Sanofi, Merck & Co Inc (MRK.N), Celgene Corp (CELG.O) and Gilead Sciences Inc (GILD.O) had yield to expressions of interest to buy Medivation.
This kind of sturdy take over interest in the San Francisco-based company demonstrates the demand for new cancer treatments, which can feasibly add patients’ lives, could add billions of dollars in revenue to the owner companies of these drugs.
Pfizer has so far prevailed in the auction for Medivation and could announce a deal as early as Monday, although the negotiations still could fall apart at the last minute, the people said. The deal is expected to be paid for by Pfizer in its entirety, or at least mostly, with cash, one of the people said.
Drug giant Pfizer, oncology offerings comprise breast cancer drug Ibrance and several other auspicious immuno-oncology products, is now set to get access to Medivation’s successful prostate cancer drug Xtandi, as well as Talazoparib, another breast cancer treatment under development by Medivation.
In the recent past Medivation rejected two takeover offers from French Company Sanofi, the most recent for $58 per share in cash and $3 per share in the form of a contingent value right relating to the sales performance of Talazoparib.
In case if Pfizer’s bid accepted, Medivation would make more than double the $6 billion it was prized earlier in the year.
Meanwhile, Medivation settled in July to share confidential information with potential buyers after Sanofi decided to drop a campaign to get rid of Medivation’s board of directors.
Medivation In its recent quarterly results posted double-digit year-over-year development for Xtandi, upholding the company’s prospects of more than 50% revenue rise for the year.