Pfizer buys cancer drug leader Medivation for $ 14million in cash

Pfizer reached an agreement for the acquisition of Medivation, one of the leading companies in the biotech sector in the fight against cancer, for around $ 14 billion. Pfizer is willing to pay $ 81.50 per share, a 21% premium based on the closing Medivation of Friday's session.

The agreement comes after months from the start of negotiations and demand for Medivation, one of the most courted independent biotech companies in the world as it specializes in the sale of a drug against prostate cancer.

The Boards of Directors of both companies have unanimously approved the merger. The transaction, anticipated by the Financial Times, "will strengthen the business of Innovative Health and Pfizer will accelerate its path toward a leadership position in oncology, one of the key areas on which we are focusing," said Ian Read, CEO and President of Pfizer. The company announced that it expects to complete the acquisition in the third or fourth quarter of 2016. "The acquisition of Medivation is bound to immediately accelerate revenue growth and Pfizer votes".

Medivation's purchase represents for Pfizer the largest operation after Hospira, last year, for $ 17 billion.