Pfizer to Buy Array BioPharma in $10.64 Billion Deal -- 3rd Update
June 17 2019 - 10:07AM
Dow Jones News
By Kimberly Chin
Pfizer Inc. agreed to buy Array BioPharma Inc. for $10.64
billion in cash, as the pharmaceutical company looks to expand its
pipeline of cancer therapies.
Pfizer said it would pay Array shareholders $48 for each of its
shares outstanding, a 62% premium to the closing price Friday.
Pfizer said it would fund the transaction with debt and existing
cash.
Shares of Array climbed 57% to $46.45 in morning trading, while
Pfizer slipped 12 cents to $42.64.
Array's portfolio includes Braftovi and Mektovi, which have been
approved for combined use in the treatment of metastatic melanoma.
The combined therapy is currently being tested in more than 30
clinical trials for other tumor-related diseases, such as
metastatic colorectal cancer.
An estimated 140,250 patients in the U.S. were diagnosed with
cancer of the colon and rectum in 2018, with roughly 50,000 people
dying from the disease annually, Pfizer said.
"The proposed acquisition of Array strengthens our innovative
biopharmaceutical business, is expected to enhance its long-term
growth trajectory, and sets the stage to create a potentially
industry-leading franchise for colorectal cancer alongside Pfizer's
existing expertise in breast and prostate cancers," Pfizer Chief
Executive Albert Bourla said in prepared remarks.
Pfizer is looking to shore up its cancer drug lineup, which it
projected to generate $8.3 billion in sales this year, according to
research firm EvaluatePharma. Pfizer expects oncology products in
2019 to outsell heart and other primary-care medicines the company
was long known for.
Upon the deal's closing, Array will be a part of Pfizer's
oncology research and development network.
The New York company said it expects the transaction to hit
adjusted per-share earnings by 4 cents to 5 cents in 2019 and 4
cents to 5 cents in 2020. Pfizer expects to the deal to add to
earnings at the beginning of 2022.
Pfizer expects the transaction, which is worth $11.4 billion
including debt and other factors, to be completed in the second
half of the year.
The Array acquisition adds to a streak of deals by
pharmaceutical companies looking to bolster their cancer treatment
portfolios, now one of the biggest pharmaceutical segments.
Cancer-drug sales are projected to reach $138 billion world-wide
this year, according to EvaluatePharma.
Last month, Merck & Co. agreed to acquire cancer drug
developer Peloton Therapeutics Inc. for $1.05 billion in cash.
Earlier this year, Eli Lilly & Co. acquired Loxo Oncology Inc.
for roughly $8 billion in cash and Bristol-Myers Squibb Co. said it
was buying Celgene Corp. in a $74 billion, which is slated to close
in the third quarter.
Write to Kimberly Chin at kimberly.chin@wsj.com
(END) Dow Jones Newswires
June 17, 2019 09:52 ET (13:52 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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