Pfizer's $43B Seagen Acquisition Faces In-Depth FTC Antitrust Scrutiny
Pfizer
Pharmaceutical R&D Developer
Seagen
Monoclonal Antibody Developer
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Intelligent Finance APP learned that Pfizer (PFE.US) plans to acquire Seagen (SGEN.US) for $43 billion, and the deal will undergo an in-depth antitrust review by the U.S. Federal Trade Commission (FTC).
Seagen disclosed in a regulatory filing that both companies had received so-called second requests from antitrust authorities, asking for more information about the deal. In June this year, the two companies withdrew their application and refiled it to give the Federal Trade Commission more time for the initial review.
This requirement is normal in major transactions, although it may indicate potential antitrust challenges. Depending on the complexity of the case, the review period could extend for months or even years. The two companies still anticipate completing the deal by the end of 2023 or early next year.
Pfizer announced in March that it would acquire Seagen, a cancer drug manufacturer.Seagen, which is the largest acquisition so far this year. Seagen is a leader in developing a type of drug called antibody-drug conjugates, which use antibodies to deliver high concentrations of drugs directly to tumor sites, reducing side effects and enhancing efficacy.
Pfizer stated that if the deal is successful, Seagen's portfolio will double Pfizer's pipeline of early-stage experimental cancer therapies.
The two companies said at the time the deal was announced that they expectedFTCIt will be subject to close scrutiny but is not expected to encounter antitrust difficulties. However, in May this year,FTCThe proposal for Amgen (AMGN.US) to acquire Horizon (HZNP.US) for $27.8 billion has been questioned. This is the first time in more than a decade that the institution has attempted to block a pharmaceutical company's acquisition and raised doubts about the feasibility of Pfizer's plan to acquire Seagen.