How PFE can get benefit from acquisition of seagen

The acquisition of Seagen by Pfizer provides several benefits:

1. Enhanced Oncology Portfolio: The acquisition doubles Pfizer's oncology pipeline, with 60 programs spanning multiple modalities including ADCs, small molecules, bispecifics, and other immunotherapies. This diversification strengthens Pfizer's position in oncology and positions it for future growth.
2. Complementary Technologies: Seagen's proprietary ADC technology complements Pfizer's existing capabilities, allowing Pfizer to advance Seagen's ADC technology and potentially unlock novel target combinations.
3. Increased Revenue Potential: Seagen's four in-line medicines, including ADCETRIS®, PADCEV®, TIVDAK®, and TUKYSA®, are either blockbuster or have blockbuster potential, contributing meaningfully to Pfizer's revenue goals. Pfizer anticipates that these products will generate approximately $3.1 billion in revenue in 2024, with potential growth to $10 billion by 2030.
4. Diversification Beyond Oncology: The acquisition also brings in non-oncology commercial assets, which will be split into two focused business divisions to improve execution and speed.
5. Cost Reduction: Pfizer plans to create a new oncology division, which will integrate certain oncology commercial and R&D operations from both companies. This integration is expected to lead to cost savings and efficiency improvements.
6. Regulatory Approval: The acquisition has received all necessary regulatory approvals, including from the U.S. Federal Trade Commission (FTC), which required Pfizer to donate the rights of royalties from sales of Bavencio® (avelumab) in the U.S. to the American Association for Cancer Research (AACR).

In summary, the acquisition of Seagen significantly enhances Pfizer's oncology presence, diversifies its revenue streams, and is expected to contribute to the company's long-term financial growth.