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Pfizer to strengthen cancer portfolio with Array
Posted on Tuesday, 18 June 2019 10:26
Pfizer has agreed to buy US commercial-stage biopharmaceutical Array BioPharma for an enterprise value of USD 11.40 billion.
The acquiror is offering USD 48.00 per share in cash, representing a premium of 62.2 per cent to the target’s close of USD 29.59 on 14th June, the last trading day prior to the announcement.
Directors of both businesses have approved the deal, which is slated to complete in the second half of 2019.
Headquartered in Colorado, Array is a biopharmaceutical company focused on the discovery and development of small molecule drugs to help treat patients suffering with cancer and other high-burden diseases.
The group posted revenue of USD 204.14 million for the nine months ended 31st March 2019, up from USD 138.33 million in the corresponding period of 2018.
As of 31st March 2019 and 30th June 2018, Array held cash, cash equivalents and marketable securities totalling USD 479.10 million and USD 413.40 million, respectively.
Except for the fiscal year 2015, the company has incurred operating losses due to ongoing research and development, accumulating a total deficit of USD 1.10 billion as of 31st March 2019.
As a result of the deal, Pzifer will snap up Array’s portfolio, which includes Braftovi and Mektovi, a combination therapy used to treat mutant unresectable or metastatic melanoma.
The inhibitors are currently being tested in over 30 clinical trials, such as the phase 3 BEACON trial in BRAF-mutant metastatic colorectal cancer.
In the US, this strain of cancer is listed as the third most common type in men and women with 140,250 patients diagnosed with the disease last year, according to the American Cancer Society.
Albert Bourla, chief executive of the buyer, said the acquisition will strengthen its innovative biopharmaceutical business and enhance its long-term growth trajectory, whilst positioning the company as a potentially leading franchiser for colorectal cancer.
The transaction is expected to be dilutive to Pzifer’s earnings per share (EPS) in 2020, neutral in 2021, but will increase the buyer’s EPS from the beginning of 2022.
Based in New York, the purchaser is a global pharmaceutical company which develops and manufactures healthcare products, including medicines and vaccines, across 160 countries.
Pzifer has 96,500 employees worldwide and generated revenue of USD 13.12 billion for the quarter ended 31st March 2019 (Q1: USD 12.91 billion).
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