Earlier this week, Pfizer announced its plans to buy Medivation Inc., a top independent biotech, for $14 billion. Generating about $2 billion in sales annually, Medivation’s leading prostate-cancer drug, Xtandi, is one of the only prostate-cancer treatments that is approved and selling well in the industry.
In the article, “Pfizer to Buy Medivation for $14 Billion”, Jonathan D. Rockoff writes:
“Pfizer has been seeking to expand its lineup of such oncology treatments. Xtandi would give the New York drug company a beachhead in prostate cancer complementing its breast-cancer treatment Ibrance, which is on track to be a blockbuster.”
With roughly $80 billion in sales annually, cancer is one of the biggest markets in the pharmaceutical industry. This makes cancer agent drugs, similar to Xtandi, extremely valuable to companies creating bidding wars for ownership. Having the rights to such drugs provides the opportunity to further develop these cancer agents with immunotherapy.
Read the full article, Pfizer to Buy Medivation for $14 Billion, from the Wall Street Journal for more information.