Pfizer’s proposed $43bn acquisition of Seagen has been unconditionally approved by the European Commission (EC) after it concluded that the transaction would not raise competition concerns or negatively impact treatment prices.
The merger, which was originally announced in March this year, would mark a significant boost to Pfizer’s oncology pipeline and grant it access to Seagen’s proprietary antibody-drug conjugate (ADC) technology.
Dr Albert Bourla, chairman and chief executive officer of Pfizer, said at that time that the company was “deploying its financial resources to advance the battle against cancer”.
“Oncology continues to be the largest growth driver in global medicine, and this acquisition will enhance Pfizer’s position in this important space and contribute meaningfully to the achievement of Pfizer’s near- and long-term financial goals,” Bourla said.
The EC noted in a statement that while the companies’ had overlapping marketed and pipeline products in several cancer types, the merger “would not significantly reduce competition” in these markets within the European Economic Area.
Based on its market investigation, it found that the transaction would not lead to a loss of innovation “given that there is a significant number of players engaged in research and development activities in the broader oncology space” or result in the discontinuation, delay or re-orientation of the companies’ ongoing and overlapping lines of research or pipeline projects as they target different segments of patients and do not have the same mode of action.
The agency also found that the transaction was unlikely to have a negative impact on prices, “given that the parties’ offerings are differentiated and complementary and that the markets for the treatment of the various cancer types examined are sufficiently competitive”.
In July, the US Federal Trade Commission (FTC) requested more information and documentary material regarding the Pfizer/Seagen transaction.
At the time of the request, concern was rising among investors regarding the FTC’s decision to block Amgen’s proposed $27.8bn takeover of Horizon Therapeutics.
The Amgen/Horizon transaction has since been allowed to proceed after a proposed consent order was reached with the FTC to address the “potential competitive harm” that could result from the deal.