Jun 1, 2017

Cancer-treatment company seeks a buyout

Tesaro is celebrating the approval of its cancer-treatment drug by seeking a sale, per WSJ.

Why it matters: Tesaro makes cancer drugs, and a sale could induce a bidding war among other drug companies who want a piece of the competitive space that has also commanded extremely high prices.

The numbers: The company most recently had a market value of $7.4 billion, which means should a bidder be approved, the sale could be as high as $9 billion, WSJ notes.

The drug: It's called Zejula and it helps treat ovarian cancer. Analysts estimated that Zejula sales could hit $1.9 billion by 2022, but only if it expands to treat other types of cancer (like breast cancer).

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