Pfizer Inc. announced today that it has received all the necessary regulatory approvals to finalize its acquisition of Seagen Inc., with the expected closing of the deal set for Thursday. In response to concerns raised by the Federal Trade Commission, Pfizer has made a commitment to donate the royalties from sales of Bavencio in the U.S. to the American Association for Cancer Research. This significant contribution will support the organization's mission of advancing cancer research and funding.
As part of their integration strategy, Pfizer plans to make changes to their commercial organization to enhance collaboration with Seagen and streamline execution speed. To achieve this, Pfizer will establish the Pfizer Oncology Division—an end-to-end business organization that will combine specific commercial and R&D operations from both companies. The implementation of this new structure is scheduled for January 1st.
In an effort to strengthen its presence in the oncology market, Pfizer launched a $43 billion offer to acquire Seagen back in March. The forthcoming investor day on Wednesday will provide an opportunity for Pfizer to offer guidance for 2024.
Despite challenges faced throughout the year, Pfizer remains committed to continued growth and development. While its stock has experienced a decline of 44% year-to-date, the S&P 500 has seen a 20% increase during the same period.