The pharmaceutical company Pfizer (NYSE: PFE) Inc said on Monday it would buy the US manufacturer of drugs for cancer from Medivation Inc, the transaction being valued at approximately $ 14 billion.
The shares of Medivation rose on Wall Street by 19.8 % to $ 80.50, while Pfizer suggested a price of $ 81.50 per share.
In April, the French pharmaceutical company Sanofi (PA: SASY) SA made an offer to purchase Medivation for $ 52.50 per share, after which the San Francisco based company became up for sale.
Four months ago, Pfizer has finished a deal to merge with the Irish Allergan worth $ 160 billion. After that, the US company acquired Anacor Pharmaceuticals Inc for $ 5.2 billion, adding to its portfolio drugs for eczema.
Following the transaction, Pfizer, which produces Ibrance, a drug for the treatment of breast cancer, and other promising products related to cancer, got access to Xtandi, a drug used to fight prostate cancer, and other medicines against breast cancer like Talazoparib, which is under construction.
Besides Pfizer, the interest in buying Medivation was previously shown by Merck & Co Inc (NYSE: MRK), Celgene Corp (NASDAQ: CELG) and Gilead Sciences Inc (NASDAQ: GILD).
Pfizer reported that it expects to complete the acquisition, which was approved by the boards of directors of both companies, in the third or fourth quarter of the fiscal year.
As for the US stock market, it closed Monday trading session mixed due to the strengthening of the health, utilities and finance sectors, and the negative dynamics on the part of oil and gas, technology and consumer goods sectors.
At the close on the New York Stock Exchange, Dow Jones fell 0.12%, S & P 500 fell 0.06%, and NASDAQ Composite Index rose 0.12%.