In one of the most exciting biotech deals in recent memory, Pfizer Inc. is acquiring biopharmaceutical company Medivation Inc., which is synonymous with cancer treatment development.

Pfizer edged out Sanofi, the France-based drugmaker that initially offered $9 billion, to snag Medivation for a whopping $14 billion.

The Medivation acquisition is the biggest deal from Pfizer since it purchased Hospira Inc. in 2015 for $17 billion.

The merger was announced on Monday, Aug. 22, and gives an impetus to Pfizer's oncology-oriented ambitions.

"The addition of Medivation will strengthen Pfizer's innovative health business and accelerate its pathway to a leadership position in oncology, one of our key focus areas, which we believe will drive greater growth and scale of that business over the long-term," noted Ian Read, the company's CEO and chairman.

Under the terms of the deal, Pfizer will be paying $81.50 in cash for each outstanding Medivation share. Post the announcement, the shares of Medivation - which closed at $67.16 on Aug. 19 - rocketed to $80.58 in early trading on Monday, Aug. 22, a jump of nearly 20 percent.

Pfizer is optimistic that the deal will add $0.05 cents per share to its earnings in the first full year itself after closing. This will happen in Q3 2016 or Q4 2016. The company will finance the $14 billion deal with prevailing cash funds.

Thanks to the merger, Pfizer now has advanced prostate cancer treatment Xtandi (enzalutamide) in its kitty. This treatment has already been given the green signal and can be sold not only in the United States, but also other parts of the world.

Analysts are estimating that sales of Xtandi will generate nearly $1.33 billion in annual sale for Pfizer in the next four years.

Pfizer has been focusing on new treatments - especially drugs for cancer - to give a fillip to its revenue as sales for its other medicines see a slowdown. Buoyed by sales of Ibrance (palbociclib), a breast cancer treatment, Pfizer surpassed analysts' expectations when it reported its Q2 2016 earnings in August.

Medivation also has two more products in the field of oncology that are currently experimental, but hold promise. The first is a breast cancer drug that is essentially a PARP inhibitor. This drug, talazoparib, could potentially be one of the most potent medicines in the PARP class according to analysts. The second drug, pidilizumab, is for blood cancer lymphoma. Both hold a lot of promise and could aid Pfizer generate more revenue.

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