Pfizer Expands Cancer Drug Portfolio with the Acquisition of Medivation – Latest Report on Pfizer

NEW YORK, NY / ACCESSWIRE / August 23, 2016 / Pfizer Inc. (NYSE: PFE) shares declined 0.37 percent to close at $34.84 a share Monday. The stock traded between $34.76 and $35.28 on volume of 26.04 million shares traded. The stock appears to be facing some resistance at $35.52 and $36.93 with some support at $34.36 and $33.81. On Monday, Pfizer announced that it had acquired cancer drug company Medivation and its blockbuster prostate cancer drug Xtandi for $81.50 a share or approximately $14 billion, which was well above Sanofi’s initial offer to acquire Medivation for $52.50 a share. Register with us now for your free membership and gain access to our latest reports at: www.rdinvesting.com/subscribe-today/.

“The proposed acquisition of Medivation is expected to immediately accelerate revenue growth and drive overall earnings growth potential for Pfizer,” said Ian Read, Chairman and CEO, Pfizer. “The addition of Medivation will strengthen Pfizer’s Innovative Health business and accelerate its pathway to a leadership position in oncology, one of our key focus areas, which we believe will drive greater growth and scale of that business over the long-term. This transaction is another example of how we are effectively deploying our capital to generate attractive returns and create shareholder value.”

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XTANDI

According to Pfizer’s news release, the company describes XTANDI® (enzalutamide) as “an androgen receptor inhibitor that blocks multiple steps in the androgen receptor signaling pathway within the tumor cell. XTANDI is the leading novel hormone therapy in the United States today and generated approximately $2.2 billion in worldwide net sales over the past four quarters, as recorded by Astellas Pharma Inc., with whom Medivation entered an agreement in 2009 to develop XTANDI globally and commercialize jointly in the U.S.”
Since receiving approval from the U.S. Food and Drug Administration in 2012, Xtandi has treated 64,000 men for advanced metastatic prostate cancer in the U.S. alone. Xtandi has the potential to be one of the top-selling cancer drugs by 2020, according to EvaluatePharma.

Medivation’s Pipeline

Medivation late-stage oncology pipeline also includes talazoparib and pidilizumab. Talazoparib is currently in a Phase 3 study for the treatment of BRCA-mutated breast cancer and has the potential to be a highly potent PARP inhibitor and could be efficacious across several additional tumors.

“We believe the combination of Xtandi and talazoparib has the potential to be a uniquely value-added combination in the treatment of prostate cancer and should be closely watched,” wrote Leerink analysts in a recent client note.

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