Oncolytics Biotech Inc ONCY

PFE to acquire Seagen?

[fox7mf]

The WSJ is reporting that Pfizer is in early stage discussions to acquire Seagen for in and around $30b usd. I don't what, if any implications this holds for an Oncy deal, but certainly Pfizer only has so much money. Is Roche in the drivers seat to get a business development deal with Onc? Some answers Matt would be nice, Matt.

[fox7mf]

This certainly wasn't the first bit of news we were looking for at the end of PFE's 90 day exclusivity with Bracelet. 

[Noteable]

Another advantage with the acquisition of ONCY is that Big Pharma, like Merck, Pfizer and Roche, would not face FTC and EU Competition Board secrutiny, as had Merck when they attempted to acquire Seagen last year for US$40 Billion. 

[Noteable]

While a tie-up with Seagen makes strategic sense, any acquisition attempt will be scrutinized by antitrust officials seeking to toughen approach to pharma mergers. So don't look at either Pfizer or Merck to seriously move forward with the acquistion of Seagen, unless they want to attract the wrath of the regulators which would place any of their M&A plans in jeapardy. The rumor of

[Noteable]

What this rumor does is to set the stage with the market, and its future expectations, for Pfizer to make multiple M&A deals this year for an accumulated value of US$40 Billion or more, without experiencing any negative reaction to the company's M&A moves.

[Lesalpes29]

$25 billion in annual revenue by 2030 from business development deals, as it seeks to mitigate an expected $17 billion impact to the company’s annual revenue from drugs going off patent. Pfizer believes its acquisitions in 2022 brought the company 40% of the way to that $25 billion goal. Pfizer goal! $25 billion in annual revenue by 2030

[Noteable]

What th WSJ reported is that Seagen currently has a market cap of $30.14 billion and any acquisition agreement is expected to carry a heftier price tag than that. However it is unlikely that this acquiition will happen given that the regulators negative view of Merck's US$40 Billion offer for Seagen last year.

[Noteable]

Here is a 2017 EU antitrust decision - this one involving Google - but which has direct application in law on any potential Prizer/Seagen hook-up and which also had legal  impact on Merck's decision not to move forward with their 2022 intent to acquire Seagen. Their decision rests on the following: "Market dominance is, as such, not illegal under EU antitrust rules. However

[Noteable]

And the reason that Merck stepped down from its intention to acquire Segean is that in September 2022 judgement Google lost its challenge of the EU's antitrust decision. "The judgment strengthens the hand of the Commission. It confirms the Commission can use antitrust proceedings as a backstop threat to enforce rapid compliance ..." https://www.reuters.com/technology/eu-courts-wed