Pfizer to acquire cancer-drug maker Medivation

Pharmaceutical giant Pfizer said Monday that it had reached a deal to acquire cancer-drug maker Medivation for about $14 billion, including the assumption of debt.

The deal makes Pfizer (PFE) the winner in a bidding war that started when French drug firm Sanofi offered about $9.3 billion for Medivation in April.

Pfizer will pay $81.50 per share in cash for Medivation, maker of the prostate-cancer drug Xtandi, which is also being developed for treatment of advanced breast cancer and hepatocellular carcinoma.

Medivation shares (MDVN) soared 20% in early trading Monday to $80.50. At that price, the company's stock has nearly tripled from its 2016 low, registered in February. Pfizer rose 0.3%.

The company had fended off Sanofi's initial unsolicited bid of $52.50 per share.

Pfizer said it expects to close the deal in the third or fourth quarter.

Follow Paste BN reporter Nathan Bomey on Twitter @NathanBomey.