Pfizer has agreed to pay a little more than $80 per share for Medivation, one of the people said, a substantial premium to the $52.50 offer for Medivation that France's Sanofi made in April, which eventually resulted in the company putting itself up for sale. Medivation shares ended trading in New York on Friday at $67.16.
The strong acquisition interest in the San Francisco-based company illustrates how demand for new cancer treatments, which can possibly add years to patients' lives, could spell billions of dollars in revenue to the companies that own them.
Pfizer has so far prevailed in the auction for Medivation and could announce a deal as early as Monday, although the negotiations still could fall apart at the last minute, the people said. The deal is expected to be paid for by Pfizer in its entirety, or at least mostly, with cash, one of the people said.
The sources asked not to be identified because the negotiations are confidential. Pfizer and Medivation declined to comment. The Financial Times first reported on Pfizer nearing a deal for Medivation on Sunday.