EU investigates Pfizer takeover of biotech Seagen for $43 billion

Takeover by pharmaceutical company Pfizer Inc. biotechnology organization Seagen Inc. for $43 billion will be investigated by EU merger authorities, Bloomberg reports .

Seagen said in a regulatory filing that the two firms will notify the European Commission of the deal, and the EU executive is investigating the proposed merger. The documents state that EU approval is a condition for closing the deal. At the same time, as Bloomberg clarifies, the headquarters of both organizations are located in the United States , and therefore they have the right, within the framework of the one-stop shop mechanism, to demand that the merger be considered by the European Commission, and not by individual EU countries for which such transactions matter. The notice of investigation comes as the EU continues to closely monitor major biotech deals.

In addition, the US Federal Trade Commission will review the merger for monopoly. The companies said they are waiting for a thorough review of the issue by the FTC.

Seagen is a biotechnology company specializing in the development of cancer treatments. The company is a leader in ADC technology designed to deliver agents directly to cancer cells.

The fact that Pfizer is in talks to acquire Seagen, a company that develops a drug for the treatment of cancer, wrote The Wall Street Journal in February. Then the interlocutors of the publication said that one of the obstacles to concluding a deal could be antitrust laws. And if the deal does go through, it will be quite large, since the market value of Seagen at that time was $30 billion. At the moment, the merger will cost Pfizer $43 billion.

WSJ interlocutors specified that Pfizer was considering buying this company last year, when Seagen was negotiating its acquisition of pharmaceutical Merck & Co. However, the negotiations stalled.

As Le Monde wrote, Pfizer has amassed billions of dollars by selling COVID-19 vaccines . The company announced its agreement to buy Seagen on March 13. Then the director of Pfizer said: "We do not buy golden eggs , we buy the goose that lays them." Seagen had $2 billion in sales in 2022 and is expected to grow by 12% in 2023.