Pfizer to Buy Array BioPharma for $11.4 Billion

Pharmaceutical giant Pfizer revealed this week that it is going to acquire Array BioPharma in a deal worth $11.4 billion.

Array BioPharma, a drug developer with a product portfolio that includes a treatment combination used for advanced skin cancer that is being tested in other cancers as well, will receive $48 per share in cash. This price represents a premium of 62 percent to the stock’s closing price of $29.59 this past Friday.

It was just in May that Array said its combination of the drugs Braftovi and Mektovi along with another treatment led to a significant improvement in overall survival in late-stage testing for some patients with colorectal cancer.

Shares of the stock saw gains of over 40% last month on the news and have more than doubled this year.

The company intends to submit results from that study to U.S. regulators for approval later this year.

“Today’s announcement reinforces our commitment to deploy our capital to bring breakthroughs that change patients’ lives while creating shareholder value,” said Albert Bourla, chief executive officer of Pfizer. “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.”

“We are incredibly proud that Pfizer has recognized the value Array has brought to patients and our remarkable legacy discovering and advancing molecules with great potential to impact and extend the lives of patients in critical need,” said Ron Squarer, Array chief executive officer. “Pfizer shares our commitment to patients and a passion for advancing science to develop even more options for individuals with unmet needs. We’re excited our team will have access to world-class resources and a broader research platform to continue this critical work.”

“We are very excited by Array’s impressive track record of successfully discovering and developing innovative small-molecules and targeted cancer therapies,” said Mikael Dolsten, Pfizer chief scientific officer and president, Worldwide Research, Development and Medical. “With Array’s exceptional scientific talent and innovative pipeline, combined with Pfizer’s leading research and development capabilities, we reinforce our commitment to advancing the most promising science, regardless of whether it is found inside or outside of our labs.”

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.