Pharmaceutical giant Pfizer snaps up cancer drug firm in £10bn deal
Viagra-maker Pfizer is to acquire cancer drug company Medivation in a deal valued at about $14bn (£10.6bn).
Medivation is best known for cancer treatment Xtandi, which it jointly markets with Japanese drug-maker Astellas Pharma.
Pfizer will pay $81.50 per Medivation share, which is a 21% premium on the biotech firm's closing price of $67.19.
The boards of both companies have approved the deal, which is expected to close in the third or fourth quarter. Pfizer chairman Ian Read said: "The proposed acquisition of Medivation is expected to immediately accelerate revenue growth and drive overall earnings growth potential for Pfizer.
"This transaction is another example of how we are effectively deploying our capital to generate attractive returns and create shareholder value."
Pfizer added that Medivation also has a promising pipeline of cancer drugs in late-stage clinical development, including the potential breast cancer treatment talazoparib and a lymphoma drug.
The deal came last month after Medivation rejected a $9.3bn takeover bid from the French drug maker Sanofi, saying that offer, worth $52.50 per share, undervalued the company.
Meanwhile, Dublin drug discovery and development company, DS Biopharma, has spun out a new firm to focus on pulmonary disorders and fibrotic conditions.
The spin-out firm, Afimmune, is to continue the clinical development of a new anti-fibrotic compound called DS102.
Afimmune also has other compounds in pre-clinical development, according to the company.
DS Biopharma, headquartered in Leopardstown, is a privately held drug development firm working on new medicines for diseases for which existing therapies are regarded as ineffective or unsafe.