Recently, Pfizer Inc. (NYSE: PFE ) announced the acquisition of Seagen, an oncology focused biotech company, for $43 billion, as the pharma giant has used its extra earnings and profits from its successful Covid-19 vaccine to ramp up purchases. Not only does this give Pfizer Inc. (NYSE:PFE) a huge advantage in a segment which is considered to be the future of pharma, it also allows the company to substitute this purchase for its R&D expense. When a company acquires another company, the purchase price isn't taken to the profit and loss but the balance sheet, which means it doesn't impact the net profit of the company. This in turn means that even though this $43 billion purchase is technically an R&D expense for Pfizer Inc. (NYSE:PFE), by purchasing a company, the company's price earnings ratio looks lower and more attractive to investors, since its earnings aren't reduced. "We aren't acquiring the golden eggs, we are buying the goose that lays the golden eggs," said Albert Bourla, Pfizer's CEO.