Seagen Acquisition to Add Billions to Pfizer’s Oncology Revenue

In December 2023, Pfizer (NYSE: PFE) completed its $43 billion acquisition of cancer-focused biotech Seagen. The deal is centered on Seagen’s expertise in antibody-drug conjugates, or ADCs, which are targeted means of delivering a toxic payload directly to tumor cells, thus limiting damage to healthy tissue. With this acquisition, Pfizer now has access to four FDA-approved cancer drugs developed by Seagen: Adcetris, Padcev, Tivdak, and Tukysa.

According to Visible Alpha consensus, the acquisition is expected to contribute approximately $3.1 billion to Pfizer’s oncology revenues in 2024, excluding revenue from its pipeline of upcoming drugs. Additionally, Seagen’s acquisition is estimated to add around $16.9 million to Pfizer’s oncology pipeline revenue for the same year. Analysts anticipate a 27% increase in Pfizer’s oncology revenues (excluding pipeline) post-acquisition and a 16.8% increase in Pfizer’s oncology pipeline revenues in 2024.

Looking ahead, Visible Alpha consensus revenue estimates indicate Seagen’s currently marketed drugs (Adcetris, Padcev, Tivdak, and Tukysa) are poised to contribute global sales of $7.1 billion by 2031 to Pfizer’s oncology revenues (excluding pipeline). This is projected to increase Pfizer’s oncology revenues (excluding pipeline) by 107% post-acquisition in 2031.