Pfizer, the pharmaceutical behemoth, has agreed to merge with Seagan Inc., a global biotechnology company, for $43 billion, or $229 per share.
Seagan is a cancer drug discovery, development, and commercialization company. The merger is anticipated to be completed by the companies in late 2023 or early 2024.
With the help of its four in-line medications, royalties, collaboration and licence agreements, and other sources, Seagen anticipates making about 2.2 billion dollars this year.
Pfizer predicts that Seagen’s risk-adjusted revenues will exceed $10 billion in 2030, with room to grow significantly after that.
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.