Pfizer to buy cancer drugmaker for $14bn

A deal is close...

Pfizer to buy cancer drugmaker for $14bn

Dan Kitwood / PA

Pharmaceutical giant Pfizer is in advance talks to acquire US cancer drug company Medivation for close to $14 billion (€12.4bn), according to Reuters.

People familiar with the matter said on Sunday that it has agreed to pay just over $90 per share for Medivation as it looks to expand its oncology portfolio.

That's up substantially from the $52.50 offer Frances' Sanofi SA made in April, a move which eventually saw the company put itself up for sale.

Shares ended New York trading at $67.16 on Friday.

Reuters reports that strong acquisition interest in the San Francisco-based company from not only Pfizer but also Sanofi, Merck & Co, Celgene and Gilead Sciences shows how the demand for new cancer treatment could bring in billions of dollars in revenue for the companies that own them.

The deal is expected to be paid for in cash and could be completed as early as today, although the sources said there was still a chance that is could collapse at the last minute.

Last month, Pfizer announced the creation of up to 350 new jobs in Dublin.

The positions will be made available as a result of the planned multimillion euro expansion of its Grange Castle Campus.

The US company's investment of between €300m and €400m will add over 34,500sq m to its campus, making it one of the largest biotech plants in the world.