One of the nation’s leading pharmaceutical companies has entered into an agreement that will strengthen its position in biopharmacy and as a leader in oncology. Pfizer and Array Biopharma have announced that they’ve entered into a definitive merger agreement, a contract that will allow Pfizer to acquire BioPharma at $11.4 billion. This equates to $48 per share in cash.
The move should steer Pfizer towards an accelerated growth for the long term in the pharmaceutical space that occupies some of the major cancer treatments.
Array is a biopharmaceutical company that focuses on the discovery, development, and marketing of small molecular medication targeted towards treating cancer and other diseases that have unmet needs.
Included in Array’s portfolio is the use of BRAFTOVI and MEKTOVI simultaneously for the treatment of certain types of metastatic melanomas. The therapy utilizing both medications holds promising potential and is being studied in more than 30 clinical trials involving many solid tumors, including one for BRAF-mutant metastatic colorectal cancer.
Colorectal cancer is the third most common kind of cancer affecting people in the U.S. In 2018, over 140,000 people were diagnosed with cancer of the rectum or colon. In addition, 50,000 patients are expected to die from colorectal cancer in a given year. BRAF-mutations, which come with a poor prognosis, account for up to 15% of colorectal cancers.
Array also has a number of targeted investigational cancer medications currently in development in addition to first-in-class medicines Pfizer expects will generate lucrative royalties for the long term.
Albert Bouria, CEO of Pfizer, said: “Today’s announcement reinforces our commitment to deploy our capital to bring breakthroughs that change patients’ lives while creating shareholder value. 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.”
Once the transaction is completed, Array’s workforce will combine with Pfizer’s in the Cambridge, Massachusetts, Boulder, Colorado, Morrisville, North Carolina, Pearl River, New York, and La Jolla, California locations.
Array CEO Ron Squarer, said: “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.”
The closing of the transaction between Pfizer and Array is pending regulatory approval. Pfizer expects the transaction to be completed later this year.