Pfizer announced a $14 billion deal for Medivation, a biotech company that makes an important cancer drug.
Pfizer will pay $81.50 in cash for each Medivation share, a 21% premium over Friday’s closing price. Medivation shares were already up nearly 40% so far this year.
Medivation’s portfolio includes Xtandi, a drug that treats prostate cancer. Pfizer said Xtandi generated approximately $2.2 billion in worldwide sales. Pfizer said the purchase should add to its earnings per share immediately. The deal still needs the approval of shareholders and regulators.