29 Sep

A Look at the Pfizer-Medivation Deal

WRITTEN BY Mike Benson

Pfizer-Medivation deal

On September 27, 2016, Pfizer (PFE) completed the acquisition of Medivation (MDVN). The stock transaction is valued at $81.50 per Medivation share, resulting in a total enterprise value of ~$14 billion.

A Look at the Pfizer-Medivation Deal

What is Medivation?

Medivation is a California-based biopharmaceutical company. It is focused on developing and commercializing innovative therapies for the treatment of serious diseases that presently have a limited scope of treatment.

Key highlights of the deal

The key highlights of the deal were as follows:

  • Medivation’s common stock is valued at $81.50 per share
  • Pfizer completed the acquisition through its subsidiary, Montreal
  • Medivation’s products and pipeline are a strong fit for Pfizer’s oncology segment
  • Medivation’s key product, Xtandi, for the treatment of advanced prostate cancer in men, reported revenues of $595 million during the last quarter and is expected to be one of the best-selling oncology drugs by 2021
  • the Medivation acquisition is expected to increase near-term revenue growth for the innovative pharmaceuticals business segment

The transaction will also preserve the potential separation of the Innovative Health and Essential Health businesses, and the Medivation products portfolio will be a part of the Innovative Health business.

To divest risk, investors could consider ETFs such as the iShares US Healthcare ETF (IHE), which has an ~8.5% exposure to Pfizer. IHE holds ~10.2% of its investments in Johnson & Johnson (JNJ), ~8.4% in Merck and Co. (MRK), and ~5.5% in Bristol-Myers Squibb (BMY).

Latest articles

15 Jul

Will Amazon Prime Day 2019 Break 2018's Record?

WRITTEN BY Jitendra Parashar

This year, Amazon extended its Prime Day to 48 hours instead of the 36-hour sale in July 2018, making the 2019 event the longest Prime Day ever.

In a series of tweets on Monday, Trump today weighed in on China’s GDP growth, which came in at a 27-year low.

15 Jul

OrganiGram's Third-Quarter Earnings


On Monday morning, OrganiGram's third-quarter earnings came in as a bit of a let-down. Here's why.

Trump is reportedly planning to increase the content of US-made steel in federal projects, which would be a lifeline for US steel companies.

Huawei is preparing for “extensive layoffs” in the US, which could put the US-China trade deal on the rocks.

With Q2's Netflix earnings just around the corner, here's what you can expect from the online streaming giant and the broader streaming space.