Shares of healthcare behemoth Pfizer (NYSE:PFE) are trending lower today after the company announced the acquisition of biotechnology company Seagen (NASDAQ:SGEN) in a $43 billion deal.
Pfizer is paying $229 in cash per SGEN share and the acquisition is expected to deepen its expertise in cancer treatment. While Pfizer’s oncology unit brought in $12 billion in sales last year, SGEN has seen its top line grow by 25% to $2 billion during this period.
SGEN’s product portfolio includes Adcetris, Tukysa, and Padcev. Pfizer is expected to fund the acquisition with long-term debt and the transaction is anticipated to be completed later this year or early next year.
Overall, Wall Street has a consensus price target of $49.67 on PFE, implying a 26% potential upside in the stock. That’s after a nearly 23% slide in PFE shares so far in 2023. SGEN shares, in the meantime, are already up nearly 20% today.
Read full Disclosure
