Pfizer buys Seagen to boost cancer drug access

Pfizer is spending about $43 billion to reach deeperintonewcancertreatmentsthattarget tumor cells while sparing surrounding healthy tissue.

The pharmaceutical giant said Monday that it will pay $229 in cash for each share of Seagen Inc.

Pfizer then plans to let the biotech drug developer “continue innovating,” except with more resources than it would have alone, Pfizer Chairman and CEO Albert Bourla told analysts.

“Wearenotbuyingthegoldeneggs,”hesaid. “We are acquiring the goose that is laying the golden eggs.”

Bothell, Washington-based Seagen Inc. specializes in working with antibody-drug conjugate, or ADC, technology. Its key products use lab-made proteins called monoclonal antibodies that seek out cancer cells to help deliver a cancer-killing drug while sparing surrounding tissue.

Cancer treatments are a priority for Pfizer. They brought in $12 billion in revenue for the drugmaker last year.

But Pfizer has marketed only a couple of first-generation ADC treatments, a spokeswoman said. Seagen has four treatments on the market. It also has a pipeline of drugs under development that includes potential treatments for a form of lung cancer and advanced breast cancer.

Seagen’s top seller, Adcetris, treats lymph system cancers. It brought in $839 million in sales last year, a 19% increase over the previous year.

Seagen also has a deal with Pfizer’s Array Biopharma to develop, make and sell the breast and colorectal cancer treatment Tukysa. It brought in $353 million in sales for Seagen last year.

The company, which changed its name from Seattle Genetics in 2020, saw total revenue grow about 25% last year to nearly $2 billion. Seagen also shaved its loss to $610 million from $674 million in 2021. The drug developer predicts about $2.2 billion in sales for this year.