Pfizer Expands Cancer Platform With High-Priced Medivation Acquisition
Despite the high price paid, we don't expect any major changes in Pfizer's fair value estimate.
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Following
Despite the high price point for Medivation, we believe Pfizer can leverage Medivation's cancer drugs more effectively through Pfizer's strong distribution channels. Further, Pfizer's large size dilutes the minor overpayment. From a strategic standpoint, the deal strengthens Pfizer's growing oncology franchise, and we remain confident in the company's wide moat.
As pricing power has eroded in several therapeutic areas, cancer drugs have continued to support robust prices, which we believe further propelled Pfizer's decision to acquire Medivation. The importance of strong pricing power likely led several other bidders, including
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