Anacor Pharmaceuticals is having an absolutely incredible start to the trading day today, and for good reason. Early this morning, the company announced that it would be acquired by Pfizer. Today, we’ll talk about the details of the acquisition, how the market reacted to the news, and what we can expect to see from ANAC moving forward. So, let’s get right to it!
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ANAC To Be Acquired By PFE
As mentioned above, it was announced early this morning that Anacor Pharmaceuticals will be acquired by Pfizer under a definitive merger agreement that was entered recently. Under the terms of the agreement, the deal will take place as a 100% cash transaction. PFE will be purchasing all outstanding shares of ANAC at a value of $99.25 per share. This brings the total acquisition value to about $5.2 billion. This is great news for both companies. For ANAC, the company will be receiving a heavy premium and on the PFE side, they will gain access to crisaborole, the flagship product at Anacor Pharmaceuticals. In a statement, Albert Bourla, Group President of Pfizer’s Global Innovative Pharma and Global Vaccines, Oncology and Consumer Healthcare Businesses, had the following to offer:
“We believe the acquisition of Anacor represents an attractive opportunity to address a significant unmet medical need for a large patient population with mild-to-moderate atopic dermatitis; which currently has few safe topical treatments available… Crisaborole is a differentiated asset with compelling clinical data that, if approved, has the potential to be an important first-line treatment option for these patients and the physicians who treat them… Anacor will be a strong fit with Pfizer’s innovative business, further supporting our strategic focus on inflammation and immunology, and is expected to enhance near-term revenue growth for the innovative business. Our dedicated inflammation and immunology group has strong existing in-market franchises with Enbrel and Xeljanz, as well as a robust mid-stage pipeline, and this acquisition has the potential to add a near-term U.S. product launch. We believe we are well positioned to maximize crisaborole’s commercial potential through our strong relationships with pediatricians and primary care physicians.”
How The Market Reacted To The News
As investors, we know that the news moves the market. Any time there is positive news released with regard to a publicly-traded company, we can expect to see gains in the value of the stock associated with the news. Not to mention, few things get investors excited quite as much as mergers and acquisitions. All in all, the news released with regard to ANAC was overwhelmingly positive. As a result, the stock is gaining big in the market today. Currently (10:05), the stock is trading at $98.95 per share after a gain of $34.92 per share or 54.54% thus far today.
What We Can Expect To See Moving Forward
Moving forward, I am expecting to see bullish activity out of both ANAC and PFE. The reality is that the acquisition is overwhelmingly positive for both. Soon, ANAC will be purchased at a rate of $99.25 per share, giving the company’s stock a big boost. On the PFE side of the equation, the company will gain access to a treatment that will likely prove to be overwhelmingly profitable. All in all, this is a win/win for both parties involved.
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What Do You Think?
Is this acquisition good news for ANAC and PFE investors? Let us know your opinion in the comments below!
[Image Courtesy of The Blue Diamond Gallery]