Pfizer to acquire US cancer drug company Medivation
Pfizer has announced that it is in advance talks to acquire US cancer drug company Medivation for close to $14 billion.
Medivation shares were up 20pc at $80.56 in premarket trade, just shy of the offer price of $81.50 per share in cash.
The offer is at a substantial premium to Sanofi’s initial offer to buy Medivation for $52.50 in April that pushed the San Francisco-based company to put itself up for sale.
The deal comes four months after Pfizer and Ireland-based Allergan Plc scrapped their $160bn merger. Pfizer has since bought Anacor Pharmaceuticals in a $5.2bn deal to add an eczema gel to its portfolio.
The deal is expected to be paid for in cash and could be completed as early as today, although the sources said there was still a chance that is could collapse at the last minute.