The logo of Pfizer is displayed on a monitor on the floor of the New York Stock Exchange, July 29, 2019.
Brendan McDermid | Reuters
Pfizer Plans to Raise $31 Billion debt issuance Funding its proposed acquisition of a cancer drug maker Seenwhich would be its biggest acquisition since 2009, according to a new filing with the Securities and Exchange Commission.
Pfizer expects to close its $43 billion acquisition of Seagen later this year or early 2024.
The bond sale is expected to close on Friday, according to an analyst Prospectus Supplement New York-based Pfizer filed with the Securities and Exchange Commission late Tuesday.
The pharma giant’s bond offering will be maximum since CVS Health It sold $40 billion in bonds in 2018 to fund its acquisition of health insurer Aetna.
Pfizer’s move comes after other companies including apple, TMobile and Merck run to Access to the US bond market Before the debt ceiling impasse sparked a possible spike in borrowing costs.
Pfizer shares fell slightly on Wednesday.
The company said it would finance the acquisition of Bothell, Washington-based Seagen through eight tranches of notes due between 2025 and 2063.
Each batch is worth $3 billion to $6 billion.
Pfizer’s 10-year bond has a yield to maturity of 4.75%, about 125 basis points higher than a year earlier US 10-Year Treasury Bond notes.
Signs are seen outside Seagen headquarters in Bothell, Wash., Tuesday, March 14, 2023.
David Ryder | Bloomberg | Getty Images
Bank of America, Citigroup, Goldman Sachs and JPMorgan Debt sale under management.
Pfizer agreed in March to buy Seagen for $229 a share in cash.
Investors are likely to keep a close eye on the high-stakes scrutiny, especially since the U.S. Federal Trade Commission filed a lawsuit Tuesday seeking to block AmgenProposed $27.8 billion acquisition horizon therapy.
The deal with Seagen is expected to bolster Pfizer’s portfolio of cancer drugs by bringing a class of antibody-drug conjugates designed to directly kill cancer cells and protect healthy cells.
Seagen has four approved cancer therapies, of which Total sales of nearly $2 billion 2022.
Pfizer said it expects Seagen’s “risk-adjusted” sales to exceed $10 billion in 2030.
That revenue could help offset continued declines in sales of Pfizer’s Covid vaccine and antiviral drug Paxlovid as the world emerges from the pandemic and becomes less reliant on those products.