Pfizer to Buy Medivation for $14 Billion

Pfizer Inc. said Monday it has agreed to buy biotech Medivation Inc. for $81.50 a share, valuing the total company at about $14 billion, in a move that adds one of the crown jewels of the multibillion-dollar market for cancer drugs to Pfizer’s portfolio.

News of the impending deal was reported Sunday.

It ends months of bidding for San Francisco’s Medivation, one of the most desired independent biotechs because it sells a leading prostate-cancer drug.

The deal is a 21% premium to Medivation’s closing share price Friday. Medivation shares traded up 20% to $80.59 as Pfizer shares fell 0.1% to $34.95 in premarket trading.

Medivation’s drug, Xtandi, already generates about $2 billion in yearly sales and has potential to more than double, according to analysts.

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http://www.wsj.com/articles/pfizer-to-buy-medivation-for-14-billion-1471864168