NEW YORK, Aug. 22 (UPI) -- Pfizer Inc. announced a $14 billion purchase of Medivation Inc., makers of the prostate cancer drug Xtandi, Monday morning.
The all-cash purchase adds a prominent medication in the multi-billion dollar market for cancer drugs to the New York-headquartered Pfizer's list of pharmaceuticals. Xtandi generates $2 billion in annual sales for Medivation, based in San Francisco.
Pfizer said, in a company statement issued Monday, that it will pay $81.50 per share in cash. Shares of Medivation closed at $67.16 on Friday, and climbed to $80.58 in early U.S. trading Monday.
Pfizer has sought expansion of its oncology medications, and a blockbuster drug such as Xtandi will complement Pfizer's breast cancer treatment Ibrance. Medivation's efforts can also mesh with Pfizer's work in immunotherapies, in which a patient's immune system is recruited to fight cancer cells.
Pfizer is considering splitting into two companies, one selling brand-name, high-profit medications, the other dealing with pharmaceuticals which have lost patent protection. The purchase of Medivation is Pfizer's largest acquisition since it bought Hospira Inc. in 2015 for $17 billion.
Medivation is regarded as an acquisition prize, as oncology has become a profitable and active area in drug development, Bloomberg News said Monday.
