Pfizer’s zeroes in on Medivation with its offer of a little more than $80 per share.
According to sources familiar with the matter at hand, Pfizer Inc. is said to be in advanced talks with Medivation Inc. so as to acquire it, Medivation Inc., a U.S. cancer drug manufacturing company for around $14 billion. If the deal goes through it is likely to boost Pfizer’s oncology portfolio.
As part of the deal, Pfizer has agreed to pay a more than $80 per share for Medivation, said a source, which is a significant hike from the $52.50 offer that France’s Sanofi SA had made earlier this year in April, which in fact, resulted in the company putting itself up for sale.
With this information hitting the news market, Medivation’s shares hit $67.16, on Friday.
Pfizer is not alone in its quest to acquire Medivation. Earlier last week, Gilead Sciences Inc., Sanofi, Celgene Corp and Merck & Co Inc. had all evinced interest in acquiring it.
This strong interest in acquiring the San Francisco-based company not underlines the rising demand for new cancer treating drugs, which could spell billions of dollars in revenues for companies which own them.
So far, Pfizer has prevailed over the competition in the auction for Medivation and a deal could be announced anytime soon. However, sources have cautioned that negotiations could still fall through at the last minute.
According to a source, the deal is expected to be paid for by Pfizer in its entirety, or at least mostly, with cash.
If the deal goes Pfizer’s way, the company’s coffers could be further boosted by Medivation’s Xtandi and Talazoparib, a prostrate cancer and a breast cancer fighting drugs, which are currently under development at Medivation.
Having successfully resister, Sanofi’s takeover bid, Medivation was forced to share confidential information with potential buyers in July when Sanofi agreed to drop a campaign to oust Medivation’s board of directors.
Medivation’s second quarter earnings have continued to report double digit growths, affirming expectations of more than 50% growth from revenues for this financial year.