New York-based drug giant Pfizer will buy the much sought after biotech Medivation for $14 billion.
The San Francisco-based drugmaker developed a large presence in the cancer drug market with its prostrate cancer drug Xtandi, which earned $2.2 billion in sales over the last four quarters.
Some of the drug industry's largest players showed interest in Medivation in recent months, highlighting the growing demand for new cancer treatments and drugmakers' efforts to enter the lucrative market that could produce billions of dollars in revenue.
Through the agreement, Pfizer will purchase all outstanding shares of Medivation for $81.50 per share, financing the transaction through its cash holdings.
Pfizer does not expect the deal to affect its 2016 finances, but said the deal will add 5 cents to earnings in the first full year after closing.
The deal is expected to close in the third or fourth quarter of 2016.
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