Drug Giant Pfizer Says It Has Regulatory Approval to Acquire Seagen

Pharmaceutical company Pfizer announced on Tuesday that it received regulatory approval from the Federal Trade Commission to complete its acquisition of biotech firm Seagen, and expects to close the $43 billion deal Thursday.

The deal was completed after Pfizer agreed to donate all royalties from the Seagen's lucrative cancer drug Bavencio to the American Association for Cancer Research.

In order to incorporate Seagen, which is focused on cancer treatments based on monoclonal antibodies, Pfizer will create a special division for all its cancer drugs and split the rest of its operations into newly created U.S. and international divisions, the company said in a news release.

Bavencio treats a rare form of skin cancer and costs up to $13,000 a month without insurance, according to Bloomberg. Pfizer did not say how much royalties on the drug are worth and a company spokesperson did not immediately respond to a request for comment.

The drugmaker, based in New York City, is eager sought to acquire Seagen, which is headquartered in the Seattle suburbs, to beef up its overall sales as demand for its COVID-19 drugs falter, and to offset heightened competition from generic drug companies, Reuters reported this summer.

Pfizer and Seagen, both based in the United States, have a significant presence abroad. European Union regulators approved the merger in October, according to Reuters.

Pfizer scheduled a conference call with investors to discuss the deal at 8:30 a.m. Wednesday.