Pfizer to Acquire Global Blood Therapeutics for $5.4 BOncology deals are always worth more than blood deals. But here's an interesting one that gives some parameters.
Pfizer to Acquire Global Blood Therapeutics for $5.4 B to Enhance Presence in Rare Hematology | Pfizer Proposed acquisition drives growth by bringing leading sickle cell disease expertise, portfolio and pipeline to Pfizer with potential combined worldwide peak sales of more than $3 billion
Potential to address the full spectrum of critical needs in the underserved sickle cell community
Transaction valued at $68.50 per Global Blood Therapeutics share in cash, for a total enterprise value of approximately $5.4 billion
Pfizer said on Monday it will pay $68.50 per share, representing a premium of 7.3% to Global Blood stock’s Friday closing and a 42.7% premium to Thursday’s closing, before the Wall Street Journal reported that Pfizer was in advanced talks to acquire the company. But flush with cash from sales of its Covid-19 vaccine, Pfizer has been on the lookout for acquisitions that could bring in billions in annual sales by the end of the decade.
In May, Pfizer shelled out $11.6 billion for migraine drug maker Biohaven Pharmaceutical Holding and recently also completed a $6.7 billion deal to buy Arena Pharmaceuticals.
With the acquisition of Global Blood Therapeutics, Pfizer will boost its rare disease treatment business with Oxbryta.
Oxbryta was first approved in 2019 to treat sickle cell disease among patients aged 12 years or older, and last year December, for younger patients.
Sickle Cell Disease is an inherited blood disorder that affects an estimated 70,000 to 100,000 people in the United States. The oral drug brought $55.2 million in sales for the company in the first quarter of 2022.
“The Street has wanted PFE to continue to bring in new assets to improve earnings visibility beyond the end of the decade when key assets start to lose their patent protection, and for the company to diversify its sales concentration in Covid drugs,” Cantor Fitzgerald analyst Louise Chen said.