Pfizer gets OK for $43-billion Seagen deal

Pfizer said on Tuesday it expects to close its $43 billion deal to buy cancer drugmaker Seagen later this week and plans to create a new oncology division that includes the acquisition early next year.

Pfizer also said Chief Commercial Officer Angela Hwang would step down, and that it will split the its commercial business, not including oncology, into two divisions, one focused on the United States and the other on the rest of the world.

In October, Pfizer slashed its full-year revenue forecast by 13% and said it will cut $3.5 billion worth of jobs and expenses due to lower-than-expected sales of its COVID-19 vaccine and treatment.

The company said it will unveil its 2024 forecast and hold a conference call on its new structure on Wednesday.

Chris Boshoff, who currently runs cancer research and development for Pfizer, will lead the new oncology division and report directly to CEO Albert Bourla.

Pfizer’s Chief Business Innovation Officer Aamir Malik will head up the U.S. commercial unit, while Alexandre de Germay will become commercial chief for the international unit.

Pfizer said its antitrust waiting period for the Seagen deal has expired, and it has received all necessary regulatory approvals to close the deal on Thursday, about 9 months after announcing the acquisition.

The New York-based drugmaker said it agreed to donate the rights of royalties from sales of cancer drug Bavencio to the American Association for Cancer Research to address concerns from U.S. antitrust regulators.

The company in March signed away the development and commercialization rights to Bavencio to its partner for the drug, Merck KGaA (MRCG.DE), while retaining rights to a 15% royalty on net sales of the drug.

Bavencio brought in sales of $271 million for Pfizer in 2022.

Pfizer announced the acquisition in March as it braced for the steep fall in sales of its COVID products.

The U.S. Federal Trade Commission (FTC) sent a request for more information on the Seagen deal to the companies in July. The FTC declined to comment on Pfizer’s announcement on Tuesday.

Seagen shares were up 3.3% at $228.84, close to the offer price of $229. Pfizer shares were off less than 1% at $28.53.