Why Biotech and Pharma Giants want to Takeover Medivation?
An interesting rumble is seen these days among some of the big Pharma giants for the acquisition of the American Biopharmaceutical company Medivation. Let us see why the biotech and Pharma magnates like Merck, Pfizer, AstraZeneca, Sanofi and many other potential candidates are eyeing to acquire Medivation?
According to a source, Pfizer approached Medivation to strike a deal for its takeover.
Few days back, Medivation turned down Sanofi’s bid of $52.50 per share for its acquisition. Medivation is expecting a higher bid of at least $65 per share whereas according to the analysts it should be at least $70.
Medivation’s XTANDI (enzalutamide) indicated for the treatment of metastatic castration-resistant prostate cancer (CRPC) is playing the key role in pitching the rumble higher. It is the only FDA approved star performer of Medivation which has done wonders for the company’s revenue.
During the fiscal year 2015, Medivation along with the partner Astellas Pharma elevated the total sale of XTANDI to $1.9 billion. Medivation earned $943 million in collaboration revenue and its non-GAAP (generally accepted accounting principles) collaboration revenue reached $695.4 million. XTANDI’s overall performance in terms of sales has grown significantly since its FDA approval in 2012. The company is strategizing to increase XTANDI’s revenue by positioning it more comprehensively in oncology and urology niche.
According to a Pharmacor report, major market sales of prostate cancer drug therapies will grow from $4.4 billion in 2013 to $9.3 billion in 2023 and according to a report of Decision Resources Group, it is speculated that XTANDI’s sales will lead in the world’s leading prostate cancer markets furnishing $3.4 billion in 2023.
Figure 1. XTANDI‘s performance chart (Photo credit: Medivation 10K as reported by Astellas Pharma)
Currently, the only competitor of XTANDI in prostate cancer market is Johnson & Johnson’s Zytiga which trailed in oncology prescriptions during fourth quarter of 2015. XTANDI is also getting evaluated for three major types of breast cancer and Phase II results looked positive in increasing the overall survival of triple negative breast Cancer (TNBC) patients.
XTANDI has showcased immense potential of becoming a blockbuster drug. Apparently, Medivation’s XTANDI is quite enough potent to revive the oncology portfolio of any company thus, increasing the valuation of Medivation. Other than XTANDI Medivation has talazoparib-one of the best PARP inhibitor and pidilizumab in its pipeline.
It will be interesting to see who will make the last bid and fuel the potential revenue turnaround of its company (as projected by Medivation’s previous performances). So stay with us and keep yourself posted.