$PFE TO ACQUIRE $MDVN for $14 BILLION

Sanofi tried to buy them about a month ago for much cheaper prices and were told to buzz off.

Enter cash cow Pfizer.

By acquiring Medivation, Pfizer would gain a blockbuster prostate-cancer treatment, Xtandi, that’s already approved and that analysts project will generate $1.33 billion in sales by 2020.

Medivation previously had rejected French drugmaker Sanofi’s offer of $58 a share, plus a contingent value right valued at a maximum of $3 a share. The Financial Times reported earlier Sunday that the Pfizer agreement was imminent.

This deal bodes well for large cap biotech, companies with advanced pipelines and good prospects for positive free cash flow. This is not, however, an endorsement for rampant speculation in early stage refuse, which currently populates the biotech sector in overwhelmingly large numbers.

The deal prices MDVN at $87, approximately 25% above Friday’s close.