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US-PHARMACEUTICAL-HEALTH
Pfizer acquires Array Biopharma, valued at $11.4 billion
NEW YORK, June 17, 2019 (BSS/AFP) – US pharmaceutical giant Pfizer on
Monday announced the acquisition of Array BioPharma, a biotechnology firm
that specializes in cancer drugs, the latest in a long list of biotech
mergers in recent years.
In a statement, Pfizer said it offered $48 per share in cash for Array,
putting an $11.4 billion value on the company.
“The board of directors of both companies have approved the merger,” Pfizer
said.
The proposed acquisition “sets the stage to create a potentially industry-
leading franchise for colorectal cancer alongside Pfizer’s existing expertise
in breast and prostate cancers,” Pfizer CEO Albert Bourla said.
Array’s portfolio includes two drugs, Braftovi (encorafenib) and Mektovi
(binimetinib), that when combined are effective in treating BRAF-mutant
melanoma.
The combination of the two drugs was authorized in September by the
European Commission, several months after the US Federal Drug Administration
gave its approval.
Besides melanomas, BRAF mutations occur in up to 15 percent of colorectal
cancers, Pfizer said.
The transaction shows how big pharmaceutical companies are looking to
biotech acquisitions for growth, often buying them for astronomical sums. In
early January, Bristol-Myers-Squibb acquired Celgene in a $74 billion mega
merger.
Last year, Sanofi scooped up Bioverativ, which specializes in hemophilia
treatments, for $11.6 billion and forked out $3.9 billion euros from Ablynx
of Belgium.
Novartis for its part picked up AveXis, which specializes in rare genetic
maladies, for $8.7 billion.
BSS/AFP/SSS/1925 hrs