13th March, 2023
Pfizer, the pharmaceutical giant, has entered a merger agreement with Seagan Inc., a global biotechnology company, for 43 billion dollar or 229 dollars per share.
Seagan discovers, develops and commercialises cancer medicines. The companies expect to complete the merger in late 2023 or early 2024.
Seagen expects to generate approximately 2.2 billion dollars in revenue this year from its four in-line medicines, royalties and collaboration and license agreements.
Pfizer believes Seagen can contribute more than 10 billion dollars in risk-adjusted revenues in 2030, with potential significant growth beyond 2030.
Pfizer expects to finance the transaction substantially through 31billion dollars of new, long-term debt, and the balance from a combination of short-term financing and existing cash.
According to dpa, Pfizer expects the acquisition to be neutral to slightly accretive to adjusted earnings per share in the third to fourth full year post close.
However, pfizer expects to achieve nearly one billion dollars in cost efficiencies in the third full year after the completion of the deal.