Key Points:
- Pfizer’s $43 billion acquisition of Seattle-based biotech company Seagen could make significant impacts on Seattle’s local biotech market and the industry as a whole.
- Many speculate that Pfizer will want to maintain Seagen’s strong competencies in antibody-drug conjugates (ADCs) and also its already successful remote work structure.
Pfizer has acquired Seagen, a former Seattle-based firm that had grown to international proportions while maintaining independence. This bold move was against previous predictions given Seagen’s size and the speculation that the former CEO was against acquisitions. Seagen, having a large pipeline for early programs, is considered a cornerstone in the Pacific Northwest biotech scene.
With all acquisitions comes a search for efficiencies. Eyebrows are raised as to which parts of Seagen’s operations Pfizer will keep in the Pacific Northwest. It’s likely that Pfizer will capitalize on Seagen’s proven expertise in antibody-drug conjugates (ADCs), something Pfizer has struggled with in the past. Furthermore, Seagen’s current work structure, functioning across zones with main offices in Bothell and South San Francisco, suits the remote work conditions necessitated by the COVID-19 pandemic.
Pfizer’s CEO, Albert Bourla, has reassured the public regarding the acquisition by stating they are acquiring the source of the success, not just the products of the success.
Favorably for the market, the $43 billion acquisition serves as a testing point for investors, given that biotech fundamentals remain strong. The success of the Pfizer-Seagen deal could herald a series of similar transactions due to high cash-balance pharmaceuticals and numerous products coming off patent.
The acquisition of Seagen could create more early-stage investors, considering Seagen’s reputation of long-term employment. There’s hope that some of these employees will transition into active angel investors supporting the emergence of new companies in the Pacific Northwest region.
The acquisition could also impact Seagen’s rapid growth. Pfizer’s experience and structures could aid Seagen in scaling its infrastructure to keep pace with its myriad programs and stakeholders. Observers are eager to see if Pfizer can provide added structure without blunting the dynamic approach that has made Seagen stand out.
