Medivation Inc. (MDVN) to Be Acquired by Pfizer for $14B
Shares of Medivation Inc. (MDVN) were trading up +13.38 or +19.92 percent to $80.54 per share in Monday’s premarket after news that the company would be taken over by pharmaceutical giant Pfizer (PFE) for approximately $14 billion. Medivation Inc. stock closed at $67.16, down -0.03 or -0.04 percent in Friday’s regular trading session.
San Francisco, California based Medivation was founded in 2004 from the acquisition of Medivation Neurology Inc. The biopharmaceutical company specializes in developing new therapies to treat serious illnesses which have limited treatment options.
Incorporated in 1942, New York City based Pfizer Inc. is a global research based biopharmaceutical company and the largest company of its kind in the world by revenue.
Early this morning, the two companies announced that they had entered into a definitive agreement for the acquisition of Medivation by Pfizer for $81.50 per share in cash. The deal is expected to have a total enterprise value of $14 billion and is expected to be completed by the third or fourth quarter of the current year.
The transaction was unanimously approved by the boards of both companies and will be immediately accretive to Pfizer’s adjusted diluted earnings upon the close of the transaction. Pfizer expects about $0.05 per share accretive in the first full year after the close of the transaction with further accretion and growth expected thereafter.
Medivation had already been highlighted as a takeover target, with other potential buyers that included Roche, AstraZeneca (AZN), Amgen, (AMGN), Merck & Co. (MRK), Celgene Corp. (CELG), Sanofi (SNY) and Gilead Sciences (GILD). The latest offer came in April of this year for $52.50 per share from Sanofi. The offer was subsequently raised to $58 per share that included a $3 per share contingent value right on one of Sanofi’s cancer drugs, or approximately $9 billion. The offer was rejected by Medivation and cleared the field for other companies to bid on it, which culminated with this morning’s bid from Pfizer.
David Hung, M.D., founder, president and Chief Executive Officer of Medivation stated in Pfizer’s press release that, “We believe the combination with Pfizer is the right next step in our growth trajectory and is a testament to the passion and dedication by which the Medivation team has delivered on our mission to profoundly transform patients’ lives through medically innovative therapies. This compelling transaction will deliver significant and immediate value to our stockholders and provides new opportunities for our employees as part of a larger company. We believe that Pfizer is the ideal partner to extend the reach of our blockbuster XTANDI franchise and take our promising, late-stage assets – talazoparib and pidiluzimab – to their next stages of development so that they can be made available to patients as quickly as possible.”
Medivation stock is currently trading a dollar below the offering price, while Pfizer stock is off a fraction in this morning’s premarket. With the number of other interested parties, a higher offer for Medivation from another company is still a possibility.
Other News About MDVN
Sanofi says talked with Medivation, but will be "disciplined" acquirer
Sanofi stated that it had appreciated the chance to engage in recent talks with Medivation and did not rule out making a higher offer for the company.
Medivation Affirms Guidance As Earnings Growth Flattens
Company stated it was investing ahead of an expected market expansion of its cancer drug XTANDI.
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