The total transaction value, net of cash, is approximately $5.2 billion, which assumes the conversion of Anacor’s outstanding convertible notes.
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It’s not quite the $100 billion-plus deals we’ve come to see from Pfizer ($PFE) in recent years, but the usa pharma giant has paid a still substantial sum for Californian dermatology biotech Anacor ($ANAC) Pharmaceuticals.
Anacor’s flagship asset, crisaborole, a differentiated non-steroidal topical PDE4 inhibitor with anti-inflammatory properties, is now under review by the U.S. FDA for the treatment of mild-to-moderate atopic dermatitis, commonly referred to as eczema.
Group President of Pfizer Global Innovative Pharma and Global Vaccines, Oncology and Consumer Healthcare Businesses Albert Bourla said, “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 now has few safe topical treatments available”.
Conover said this is likely one of a number of deals Pfizer will do this year as it prepares for a potential split.
The drug giant will pay $99.25 per share in cash for the smaller pharma, which holds the rights to an anti-fungal drug, Kerydin, that’s marketed in the U.S.by Novartis’ generics unit Sandoz.
Pfizer’s shares were down less than 1 percent to $33.06 at 9:51 a.m.in NY.
This represents a 55 percent premium over Anacor stock’s closing price Friday. The transaction is subject to United States antitrust clearance.
Anacor shares rose almost 54 percent to $98.50 in premarket trading on Monday, just below the offer price of $99.25 per share in cash.
The Prescription Drug User Fee Act (PDUFA) goal date for the completion of the FDA’s review is January 7, 2017.
Pfizer may be in the ranks of bidders for U.S. biotech company Medivation, a California developer of anti-cancer therapies which in early May rebuffed a $9.3 bid from French giant Sanofi. CEO Ian Read has said the company will be shopping for deals to beef up the “innovative” side of its business, in preparation for a potential breakup. Pfizer expects to complete the acquisition in the third-quarter 2016. Pfizer’s shares, meanwhile, were unchanged.
It looks like Pfizer is starting to put some of the cash it would have spent on Allergan to use.
Pfizer said it anticipates to finance the transaction through existing cash and it does not expect the transaction to impact its current 2016 financial guidance.
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Wachtel Lipton Rosen & Katz is Pfizer’s legal adviser for the deal and Davis Polk & Wardwell LLP advised Anacor.
