Pfizer recently announced the acquisition of Seagen, a US-based biotech with four marketed oncology medicines and a rich pipeline, for $43 billion. If completed, the deal will be the largest in the sector since AbbVie scooped up Allergan for $63 billion in 2019. Seagen specializes in developing antibody-drug conjugates (ADCs) that will complement Pfizer’s large oncology portfolio. Pfizer’s total cumulative revenue from Seagen therapies is expected to reach $36 billion by 2028, according to GlobalData, a leading data and analytics company.

Seagen has three marketed ADCs, Adcetris (brentuximab vedotin), Padcev (enfortumab vedotin), and Tivdak (tisotumab vedotin), which span multiple indications in both solid tumors and hematological malignancies. An ADC is made up of a monoclonal antibody that is linked to a cytotoxic agent. It then binds to a targeted molecule and induces cell death.

Israel Stern, MSc, Oncology & Hematology Analyst at GlobalData, comments:  “Seagen’s approved ADC agents all utilize the same proprietary technology, a cleavable linker attached to cytotoxic agent monomethyl auristatin-E or MMAE. What’s most impressive, however, is Seagen’s ability to develop a wide range of monoclonal antibodies, that target different cancer types. This capacity will now be enhanced by leveraging Pfizer’s protein engineering capabilities.”

Adcetris, Seagen’s current top-selling drug, was approved in 2011 to treat patients with Hodgkin’s lymphoma. It has seen its label expand to multiple lymphoma indications and is forecast to be a billion-dollar drug in 2024, according to GlobalData. Padcev, developed with Astellas Pharma for the treatment of metastatic urothelial cancer, is projected to overtake Adcetris as its top-selling drug by 2024.

Stern continues: “Seagen has successfully brought two ADCs to market in the past three years. They’re investigating these drugs in different lines of therapy and indications as a monotherapy or in combination to further expand their label and grow revenue. As an example, they are currently evaluating Padcev in the frontline for urothelial cancer in combination with Keytruda, and were granted FDA priority review.”

In addition to its marketed products, Seagen’s pipeline contains several novel ADC agents in both early and advanced clinical development. The company is also marketing oral Tukysa a small molecule kinase inhibitor of HER2 for patients with HER2- positive metastatic breast or colorectal cancer.

Stern concludes: “With all four of its marketed products forecast to be billion-dollar drugs in the next five years and a pipeline expected to yield approvals in the near and long term, Pfizer can tolerate the exorbitant buyout price and expect great returns.”