“Pfizer Bold Move: Shocking Antitrust Solution Revealed! Cancer Drug Donation Shakes Up $43 Billion Seagen Deal!”
On Tuesday, Pfizer (PFE.N) announced its agreement to donate the royalty rights from the sales of the cancer drug Bavencio to address concerns raised by U.S. antitrust regulators in connection with its $43 billion acquisition of Seagen (SGEN.O).
Having obtained all necessary regulatory approvals, Pfizer is set to finalize the deal on Thursday, nearly nine months after revealing the acquisition. The decision to acquire Seagen was made in March, anticipating a significant decline in sales of Pfizer’s COVID-related products. To offset the impact of lower COVID product sales, the company initiated a program to reduce expenses by $3.5 billion, including job roles.
Pfizer
Upon completion of the acquisition, Pfizer plans to establish a distinct cancer drugs operation and divide the remainder of its commercial business into two divisions—one concentrating on the United States and the other on the rest of the world.
As part of the restructuring, Chief Commercial Officer Angela Hwang will step down. Aamir Malik, Chief Business Innovation Officer, will assume the role of commercial chief for the U.S. unit, while Alexandre de Germay will become the commercial chief for the international unit.
The U.S. Federal Trade Commission (FTC) had requested additional information on the Seagen deal in July, though the FTC has not commented on Pfizer’s recent announcement.
To address antitrust concerns, Pfizer will donate the royalty rights for the immunotherapy drug Bavencio to the American Association for Cancer Research. In March, Pfizer had already transferred the development and commercialization rights for Bavencio to its partner, Merck KGaA (MRCG.DE), while retaining a 15% royalty on net sales of the drug.
Bavencio generated $271 million in sales for Pfizer in 2022. Seagen’s shares experienced a 3.3% increase in premarket trading, reaching $228.83—close to the offer price of $229. The narrowing gap between the offer price and the shares reflects diminishing concerns about an extended antitrust review.
