Pfizer set to finalize $43 billion Seagen deal, unveils new cancer division

New Delhi:

Pfizer announced on Tuesday its anticipation to conclude the $43 billion acquisition of cancer drugmaker Seagen later this week. The pharmaceutical giant revealed plans to establish a new oncology division, incorporating Seagen, in early 2024. This strategic move follows Pfizer's decision to split its commercial business, excluding oncology, into two divisions—one focused on the United States and the other on the rest of the world.

As part of the restructuring, Pfizer's Chief Commercial Officer, Angela Hwang, will step down. Chris Boshoff, currently overseeing cancer research and development, will lead the newly formed oncology division, reporting directly to CEO Albert Bourla. Aamir Malik and Alexandre de Germay will head the U.S. commercial unit and the international unit, respectively.

The Seagen deal, announced in March, faced scrutiny from U.S. antitrust regulators, prompting Pfizer to donate the royalty rights from sales of cancer drug Bavencio to the American Association for Cancer Research. With the expiration of the antitrust waiting period and all regulatory approvals secured, Pfizer aims to finalise the acquisition on Thursday, approximately nine months after its initial announcement.

In response to concerns about the steep decline in sales of its COVID-19 products, Pfizer also initiated cost-cutting measures, including a $3.5 billion job and expense reduction. The company is scheduled to unveil its 2024 forecast and discuss its new organisational structure on Wednesday. The U.S. Federal Trade Commission (FTC), which previously sought additional information on the Seagen deal, declined to comment on Pfizer's recent announcement.

Seagen's shares rose by 3.3 per cent to $228.84, approaching the offer price of $229, while Pfizer's shares experienced a marginal decrease to $28.53, signaling market adjustments amidst the imminent acquisition.