Medivation
| Company type | Public (until 2016) |
|---|---|
| Industry | Biopharmaceutical |
| Founded | 2003 |
| Founder | Steve Gorlin, David Hung |
| Defunct | 2016 |
| Fate | Acquired by Pfizer |
| Headquarters | San Francisco, California , United States |
Key people | David Hung (last CEO) |
| Products | Enzalutamide (XTANDI) |
| Parent | Pfizer |
Medivation, Inc. was a U.S.-based biopharmaceutical firm focused on developing innovative treatments for severe illnesses with few available therapies. Established in San Francisco, California, the company commenced operations in December 2004 after acquiring Medivation Neurology, Inc. Its last serving CEO was David Hung.
In partnership with Astellas, Medivation developed enzalutamide (XTANDI), an oral androgen receptor inhibitor taken once daily, targeting various stages of prostate and breast cancers. On August 31, 2012, the U.S. Food and Drug Administration (FDA) granted approval for XTANDI to treat patients with metastatic castration-resistant prostate cancer who had previously undergone treatment with docetaxel.
In October 2016, following an announcement in August, Pfizer completed its $14 billion acquisition of Medivation.
Company history
Medivation was founded in 2003 by Steve Gorlin and David Hung. Hung’s experience during his oncology fellowship, particularly the loss of a young breast cancer patient, inspired his commitment to developing meaningful therapeutic options.[1]
2010 – Class action lawsuit
On March 3, 2010, Medivation’s share price dropped dramatically by 67%, closing at $13.10 amid heavy trading volume. This decline led to a securities fraud class-action lawsuit asserting that the company had misrepresented the effectiveness of Dimebon for Alzheimer’s disease prior to revealing unsuccessful Phase 3 trial results.[2]
The litigation was initiated by Izard Nobel LLP with lead plaintiffs including David Applestein and Catoosa Fund, LP. The complaint charged that Medivation deceived investors regarding the drug’s clinical performance. However, on March 22, 2012, the case was dismissed with prejudice.[3] The plaintiffs appealed but in March 2014, the Ninth Circuit upheld the dismissal due to lack of evidence that Medivation’s executives had actual knowledge of any wrongdoing.[4]
2016
During April, Medivation attracted acquisition interest from several pharmaceutical giants such as Roche, AstraZeneca, Amgen, Gilead Sciences, alongside a possible hostile bid from Sanofi. AstraZeneca reportedly considered an offer around £7 billion ($10 billion). On April 29, Sanofi made a $9.3 billion takeover proposal which was declined by Medivation’s board.
Other potential buyers included Celgene and Genentech; however, Pfizer eventually secured the acquisition deal. In August, Pfizer revealed plans to purchase Medivation for $14 billion ($81.50 per share), representing a 21% premium over the closing price on August 19; the transaction finalized on September 28, 2016.
Awards
David Hung, CEO of Medivation, was honored with the EY Entrepreneur of the Year National Award in 2014 in recognition of his visionary leadership and business accomplishments.