In response to concerns raised by US antitrust authorities regarding its $43 billion acquisition of Seagen (SGEN.O), Pfizer (PFE.N) announced on Tuesday that it has decided to donate the rights to royalties on sales of the cancer treatment Bavencio.
About nine months after announcing the acquisition, the pharmaceutical company said on Thursday that it had obtained all necessary regulatory clearances to conclude the transaction.
When Pfizer prepared for a sharp decline in sales of its COVID-related medications, the company announced the acquisition in March. The corporation started a program to eliminate $3.5 billion worth of jobs and other costs as a result of lower sales of COVID-19 products.
Pfizer Inc. declares that, about Pfizer’s impending acquisition of Seagen Inc. (NASDAQ: SGEN), the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, has concluded on December 11, 2023. All necessary regulatory permissions have now been obtained by Pfizer and Seagen to finalize the purchase. On December 14, 2023, Pfizer plans to complete the acquisition of Seagen, assuming all other normal closing requirements are met.
Pfizer has decided to permanently provide the American Association for Cancer Research (AACR) the rights to royalties on sales of Bavencio® (nivolumab) in the United States in response to concerns raised by the Federal Trade Commission. With the help of this unrestricted donation, AACR will be able to carry out its purpose of sponsoring cancer research, scientific policy, research, teaching, and collaboration to prevent and cure cancer.
Modifications to the Commercial Organisation
Additionally, Pfizer announces adjustments to its commercial structure to include Seagen and enhance execution quality, speed, and focus. Pfizer will establish the Pfizer Oncology Division, an end-to-end business organization headed by Dr. Chris Boshoff, who will become Chief Oncology Officer and Executive Vice President, reporting to Dr. Albert Bourla, Chairman and Chief Executive Officer. The division will integrate certain oncology commercial and R&D operations from both companies.
The Pfizer U.S. Commercial Division, headed by Aamir Malik, who will join Pfizer as Chief U.S. Commercial Officer and Executive Vice President, and continue to report to Dr. Bourla, and the Pfizer International Commercial Division, headed by Alexandre de Germany, who will join Pfizer as Chief International Commercial Officer, Executive Vice President, and also report to Dr. Bourla, represent the company’s reorganization of its non-oncology commercial organization into two more focused business divisions. The following is a biographical sketch of Alexandre de Germay.
Although these three executives will start assuming their new positions as soon as the Seagen transaction closes, the new organizational structure will take effect on January 1, 2024.
Angela Hwang, Chief Commercial Officer and President of, Global Biopharmaceuticals Business, is leaving Pfizer after an exceptional nearly 27-year career. Angela has consented to continue serving as an advisor to assist the organization in implementing the new model. Pfizer brought an unparalleled quantity of novel medications and immunizations to patients worldwide under Angela’s direction.
Dr Albert Bourla, Chairman and CEO of Pfizer, stated, “We believe this transaction is good for patients in the battle against cancer.” All regulatory reviews related to the Seagen acquisition have been completed. Pfizer has announced modifications to the company’s commercial structure intended to optimize the impact of this transaction and improve our commercial execution across all of the company’s therapeutic areas, in light of the anticipated close of Seagen in the coming days. In addition, I would like to honor Angela Hwang’s many accomplishments and her enduring legacy. As a purpose-driven leader, Angela has continuously worked to increase the number of medical advancements available to patients worldwide.
An Invitation to the Public Webcast to Talk About the Seagen Purchase and Offer Complete Financial Guidance for 2024
Separately, on Wednesday, December 13, 2023, at 8:30 a.m. EST, Pfizer invites investors and the general public to watch and listen to a webcast of a live conference call with financial analysts. Pfizer will talk about the Seagen acquisition, the new commercial organization, and its financial projections for the entire year 2024 on the call.