Big Pharma’s competition to buy new cancer drugs

Pfizer announced on Monday that it will pay $14 billion to acquire Medivation, the company behind the prostate cancer drug Xtandi. The purchase will help make Pfizer a stronger presence in the lucrative cancer drug business, with the possibility of expanding Xtandi to breast cancer treatment.

It’s the most recent in a push by large pharmaceutical companies to acquire smaller innovative companies. The high price is partly due to Xtandi already competing strongly in the market. Critics of the strategy say it can lead to higher prices for pharmaceuticals for insurers and their customers.

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