Pfizer announces $11.4bn merger with Array BioPharma
New York-based pharmaceutical conglomerate, Pfizer Inc announced today that the company has entered into a definitive merger agreement to acquire Array BioPharma, a commercial stage biopharmaceutical company focused on the discovery, development and commercialization of targeted small molecule medicines to treat cancer and other diseases of high unmet need.
The deal will see Pfizer pay US$48 per share of Array BioPharma, for a total consideration valued at $11.4bn.
“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.”
Array brings a pipeline of groundbreaking cancer-targeting drugs in the design, clinical trial and production phases, particularly aimed at treating melanomas in the BRAFV600E or BRAFV600K genes. The therapy reportedly has significant opportunity for growth into areas of underserved BRAF-mutant metastatic colorectal cancers.
In the US, colorectal cancer is the third most common type of cancer in men and women. An estimated 140,250 patients were diagnosed with cancer of the colon or rectum in 2018, and approximately 50,000 are estimated to die of their disease each year.
In addition to the combination therapy for BRAF-mutant metastatic melanoma, Array brings a broad pipeline of targeted cancer medicines in development, as well as a portfolio of out-licensed potentially best-in-class and/or first-in-class medicines, which are expected to generate significant royalties over time.
“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.”
The acquisition is expected to close in the second half of 2019.