The American pharmaceutical company Pfizer, known for its corona vaccine, is taking over the American biotechnology company Seagen for 43 billion dollars.
Business newspaper The Wall Street Journal previously reported that the two parties were in talks about a possible takeover.
With the acquisition, Pfizer is expanding its cancer treatments, with which the pharmaceutical company is trying to absorb the expected drop in sales of its corona vaccine. Pfizer announced that sales are expected to fall by a third this year.
This is mainly because there is less demand for the corona vaccine, which Pfizer developed with the German BioNTech.
Pfizer is paying $229 per share in cash for Seagen. That’s about a third more than the drugmaker’s closing price of $172.61 on Friday. Pfizer expects to fund the transaction with the issuance of $31 billion in new, long-term bond issues and a combination of short-term financing and cash.
The Seagen acquisition will contribute more than $10 billion to Pfizer’s revenue by 2030.