Pfizer (PFE) Near Deal to Acquire Medivation (MDVN) for $14 Billion

August 22, 2016 12:33 AM EDT

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Pfizer (NYSE: PFE) is near a deal to acquire Medivation (NASDAQ: MDVN) for just shy of $14 billion in cash, or about $80 per share, according to various media reports late Sunday. A deal could be announced as soon as Monday.

The offer comes at a sharp premium to the $52.50 per share hostile offer made by Sanofi (NYSE: SNY) in April, which was rejected outright by Medivation. Shortly after the rejection, Sanofi launched an effort to replace Medivation's board, which was later dropped.

In July, Medivation entered confidentiality agreements with potential suitors including Sanofi, Pfizer and Celgene (NASDAQ: CELG). It now appears Pfizer won the heated bidding war that also included a German pharmaceutical company, according to a StreetInsider source, and Merck (NYSE: MRK), according to Reuters.

In March, StreetInsider first reported Medivation was actively 'in play' and in July StreetInsider first reported Pfizer was a serious bidder with a $12 billion offer on the table. That offer has since been raised amid the bidding frenzy.

While the reported $14 billion takeover from Pfizer is seen as "healthy", according to Stifel analyst Thomas Shrader, the price "looks like Pfizer and possibly other suitors were willing to pay little or no premium to an optimistic valuation of the Xtandi franchise for the chance to get into the prostate cancer space in a high quality way." The caution may also reflect pricing uncertainty due to the recent CVS attempt to fight future Xtandi price increases and the possibility of competition in the prostate cancer space in the next few years, he added.

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