Pfizer Buying Biopharmaceutical Firm Medivation for $14B

Pharmaceutical company Pfizer is buying Medivation, a San Francisco-based biopharmaceutical company that produces molecules for oncology uses, for $14 billion, the company announced Monday in a press release.

“The proposed acquisition of Medivation is expected to immediately accelerate revenue growth and drive overall earnings growth potential for Pfizer,” Ian Read, Pfizer’s chairman and chief executive officer, said in a statement. “The addition of Medivation will strengthen Pfizer’s Innovative Health business and accelerate its pathway to a leadership position in oncology, one of our key focus areas, which we believe will drive greater growth and scale of that business over the long-term. This transaction is another example of how we are effectively deploying our capital to generate attractive returns and create shareholder value.”

The Wall Street Journal’s coverage of the merger noted that the agreement announced Monday marks the end of several months of negotiations with Medivation, which produces an important prostate cancer-related drug, over the financial terms of the transaction.

“We believe the combination with Pfizer is the right next step in our growth trajectory and is a testament to the passion and dedication by which the Medivation team has delivered on our mission to profoundly transform patients’ lives through medically innovative therapies,” said David Hung, founder, president, and chief executive officer of Medivation, in the Pfizer release.

Pfizer said it plans on financing the transaction with existing funds and values Medivation’s stock at $81.50 per share. The transaction is subject to US and other regulatory approvals.

For related articles, news, and equipment reviews, visit our Equipment Zones