Pfizer is expecting to complete its $43 billion acquisition of Seagen, a cancer-focused biotech company, on Thursday after clearing key regulatory hurdles.
The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 expired on Monday, December 11 and the company said in a press statement: “Pfizer and Seagen have now received all required regulatory approvals to complete the acquisition. Pfizer expects to close the acquisition of Seagen on December 14, 2023, subject to the satisfaction of other customary closing conditions.”
The acquisition is seen as a key move for one of the largest drugmakers in the world which saw a massive drop in revenue as the world came out of the COVID-19 pandemic. In October, it reported a quarterly loss due to a $5.6 billion inventory write-down in Paxlovid and vaccine Comirnaty.
American pharmaceutical giant announced the acquisition of Washington-based Seagen on March 13. The European Union cleared the transaction in October.
Royalty donation: Pfizer supports cancer research
Pfizer said it would donate the royalties from sales of Bavencio (avelumab) in the United States to the American Association for Cancer Research (AACR), in a bid to appease any US Federal Trade Commission concerns.
“This unrestricted donation will support AACR in its mission to prevent and cure cancer through research, education, communication, collaboration, science policy, and funding for cancer research,” the company said in the statement.
Bavencio is a prescription medicine used to treat different forms of cancer, including a common skin cancer known as Merkel cell carcinoma.
“The completion of all regulatory reviews in association with the Seagen acquisition supports our belief that this transaction is good for patients in the battle against cancer,” said Dr Albert Bourla, Pfizer Chairman and Chief Executive Officer.
“With the anticipated Seagen closing in the coming days, Pfizer has announced changes to the company’s commercial structure designed to maximize the impact of this transaction and enhance our commercial execution across all the company’s therapeutic areas.”
Organisational changes
A new Pfizer Oncology Division, an end-to-end business organisation has been created and will “improve focus, speed and quality of execution”. The new division will integrate certain oncology commercial and R&D operations from both companies and will be led by Dr Chris Boshoff, who will become Chief Oncology Officer and Executive Vice President and report to Dr Bourla.
The non-oncology commercial organisation will be divided into business divisions – the Pfizer US Commercial Division, led by Aamir Malik, and the Pfizer International Commercial Division, which will be led by Alexandre de Germay, who will join as Chief International Commercial Officer, Executive Vice President. Both will report to Dr Bourla. The new organisation will come into effect from January 1 next year.
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