Pfizer to buy Medivation for $14 billion

Pfizer Inc has agreed to buy Medivation Inc which is a biopharmaceutical company focused on developing and commercializing in the treatment for cancer.

The merger will be for $81.50 a share in cash for a total enterprise value of approximately $14 billion.

“The Boards of Directors of both companies have unanimously approved the merger, which is expected to be immediately accretive to Pfizer’s Adjusted Diluted EPS upon closing, approximately $0.05 accretive in the first full year after close with additional accretion and growth anticipated thereafter,” the company said in a statement.

Pfizer does not expect the transaction to impact its current 2016 financial guidance.

Ian Read, chairman and chief executive officer, Pfizer said, “The proposed acquisition of Medivation is expected to immediately accelerate revenue growth and drive overall earnings growth potential for Pfizer.”

Medivation’s portfolio includes Xtandi which is a leading novel hormone therapy in the US.

Xtandi, generated approximately $2.2 billion in worldwide net sales over the past four quarters, as recorded by Astellas Pharma Inc.

The purchase of Medivation, if approved by regulators, would be Pfizer`s biggest buy since it bought the medical device company Hospira last year for $17 billion, a report by AFP stated.

“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,” said David Hung, M.D., founder, president and CEO of Medivation.