Drug giant Pfizer is close to signing a $14bn agreement to acquire biotech firm Medivation.

Pfizer has been seeking acquisitions as the sales of its older drugs have slowed down, reported Bloomberg.

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The two firms are in the process of finalising the deal, which could be announced today, reported the Financial Times, citing sources familiar with the matter.

Pfizer has a market valuation of $212bn and intends to acquire Medivation by paying a premium of about one-third to latter's closing price of $67.16 per share last Friday. This would raise the value of Medivation's equity to more than $14bn.

"Pfizer has been seeking acquisitions as the sales of its older drugs have slowed down, reported Bloomberg."

The deal will put an end to months of bidding for Medivation.

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Celgene, Gilead and Sanofi were the other firms in the race to acquire San Francisco-based Medivation.

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Medivation manufactures prostate cancer drug Xtandi, which is expected to generate annual revenues of $5.7bn by 2020.

Furthermore, the biotech firm, which was established in 2004, is developing a drug called Talazoparib that is aimed at stopping tumour cells from multiplying.

Sanofi had provided a $9.3bn offer to Medivation at the end of April.

Pfizer attempted to acquire Ireland-based Allergan for $150bn, but this attempt was stopped by the US administration as the firm intended to shift its headquarters to Ireland due to low-tax policy.