Biotech Values

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Pfizer nears $14bn takeover of Medivation

US drug company set to win auction for Californian biotech group

Pfizer is nearing a $14bn deal to acquire California biotechnology company Medivation, after beating out a handful of the world’s largest drug companies to win the auction.

People close to the talks said a deal between Pfizer and Medivation could be announced as early as Monday, though they cautioned that the two sides were in the process of finalising their agreement.

Pfizer is expected to pay around a 30 per cent premium to Medivation’s closing share price at the end of last week, valuing the company at more than $14bn. The company beat out a number of suitors for Medivation including Celgene, Gilead and French drugmaker Sanofi.

San Francisco-based Medivation makes the world’s best-selling prostate cancer drug, Xtandi, which is forecast to generate $5.7bn in annual revenues by 2020.

Pfizer declined to comment and Medivation, which is being advised by JPMorgan Chase and Evercore, could not immediately be reached for comment.

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