Pfizer (PFE) Stock: Edges Up On Bamboo Acquisition

Pfizer Inc. (NYSE: PFE)

Pfizer is having an incredible start to the week this week, and for good reason. The company announced that it has made the decision to acquire Bamboo Therapeutics. Today, we’ll talk about the acquisition, how the stock reacted to the news, and what we can expect to see from PFE moving forward. So, let’s get right to it…

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PFE Acquires Bamboo Therapeutics

As mentioned above, Pfizer is having a strong day in the market today after announcing the acquisition of Bamboo Therapeutics. Bamboo is a privately held biotechnology company that is focused on developing gene therapies for the potential treatment of rare diseases related to neuromuscular conditions and those affecting the central nervous system.

This isn’t the first time that PFE has shown interest in Bamboo Therapeutics. In fact, the company already owned about 22% of the fully diluted shares of the company. This transaction, valued at about $43 million, was made in the first quarter.

What’s In It For Pfizer

This acquisition is really a great deal for Pfizer. Gene therapies are a quickly emerging and promising area in the medical industry and Bamboo has a strong portfolio in this area. The portfolio includes several potential best-in-class RAAV-based gene therapies. At the end of the day, this will help to expand the portfolio at PFE in a big way in the areas of neuromuscular and central nervous system treatments. In a statement, Mikael Dolsten, President of Worldwide Research & Development at PFE, had the following to offer:

The field of gene therapy research has made tremendous strides in recent years, and we are pleased to be able to further enhance our leadership position in this area through this transaction with Bamboo… We believe that gene therapy may hold promise of bringing true disease modification for patients suffering from devastating diseases, and we hope to see this promise come to fruition – through new an existing in-house capabilities and potential leadership opportunities – in the years to come.”

How The Market Reacted To The News

As investors, one of the first things that we learn is that the news moves the market. Any time positive news is released with regard to a publicly-traded company, we can expect to see gains. Adversely, negative news will generally lead to declines. In this particular case, the news that was released was overwhelmingly positive. So, we’re seeing gains surrounding PFE today. Currently (2:14), the stock is trading at $37.26 per share after a gain of $0.37 per share (0.99%) thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Pfizer. At the end of the day, the company has built an incredible brand. With the new acquisition of Bamboo, the company only broadens its portfolio and becomes stronger because of it. All in all, I’m expecting to see further gains out of PFE.

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What Do You Think?

Where do you think PFE is headed moving forward? Join the discussion at TalkTRENDZ!

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