Loading...

Pfizer Buying Spree Continues With $5.4B Hematology Deal

August 8, 2022by Tom Murphy and Michelle Chapman, Associated Press
The Pfizer logo is displayed on the exterior of a former Pfizer factory, on May 4, 2014, in Brooklyn, New York. (AP Photo/Mark Lennihan, File)

Pfizer will spend about $5.4 billion to buy Global Blood Therapeutics as the pharmaceutical giant continues to invest some of the cash influx reaped during the COVID-19 pandemic.

Pfizer said Monday that the acquisition will boost its capabilities in rare hematology. Global Therapeutics makes Oxybryta tablets for treating sickle cell disease.

The latest deal follows Pfizer’s $11.6 billion acquisition of Biohaven, which the companies announced in May, and a $6.7 billion acquisition of Arena Pharmaceuticals announced last December.

Pfizer also announced in April a smaller acquisition to buy the privately held ReViral Ltd., which is developing a treatment for respiratory syncytial virus.

Pfizer Inc.’s top-selling COVID-19 vaccine and treatment have left the New York City drugmaker flush with cash to spend on an acquisition spree. The vaccine and treatment brought in more than $16 billion combined just in the recently completed second quarter.

Pfizer’s vaccine, Comirnaty, rang up nearly $37 billion in sales last year alone, but those sales are expected to fade in a few years. Pfizer also faces over the next decade the loss of patent protection for key products like Eliquis for preventing blood clots and strokes.

The company plans to have about $25 billion in sales by 2030 come from new business developments.

Aamir Malik, the company’s chief business innovation officer, told analysts recently that Pfizer was “leaving very few stones unturned” in looking for expansion opportunities. Malik said Pifzer was looking for deals that will speed up growth in the back half of the decade and can add substantial value either scientifically or commercially.

“I think we’re very excited about the opportunities that are ahead of us and the flexibility that our balance sheet gives us to pursue those,” he said during a call to discuss second-quarter results.

Aside from Oxbryta, Global Blood Therapeutics also is developing some other treatments for sickle cell disease.

Oxbryta sales were about $195 million last year, but Pfizer said it plans to speed up distribution of the drug to parts of the world most impacted by the disease.

Sickle cell disease is an inherited blood disorder that can lead to bouts of acute pain and organ damage. It occurs particularly among people of African descent.

Pfizer will pay $68.50 per share in cash for each share of Global Blood Therapeutics. That represents a premium of nearly 43% from the stock’s closing price of $47.99 on Aug. 4, the day before The Wall Street Journal reported that Pfizer was in advanced talks on a deal.

Both companies’ boards have approved the deal, which still needs regulatory approval and approval from GBT shareholders. The companies say the deal could close as soon as the fourth quarter.

Shares of Global Blood Therapeutics Inc., based just outside San Francisco, rose more than 4% to $66.68 before the opening bell. Shares of Pfizer were essentially flat.

___

Follow Tom Murphy on Twitter: @thpmurphy

In The News

Health

Voting

Business

September 26, 2022
by Tom Ramstack
Boeing to Pay $200M After Fraud Accusations

WASHINGTON — Boeing Co. agreed last week to pay $200 million in fines to settle Securities and Exchange Commission allegations... Read More

WASHINGTON — Boeing Co. agreed last week to pay $200 million in fines to settle Securities and Exchange Commission allegations that it deceived investors about the safety of the 737 Max airliner after two deadly crashes. Company executives told investors the airplane complied with Federal Aviation... Read More

US Sen. Warnock: Electric Car Tax Credit Needs 'Flexibility'

SAVANNAH, Ga. (AP) — U.S. Sen. Raphael Warnock, D, Ga., urged the U.S. Treasury secretary Friday to use “maximum flexibility”... Read More

SAVANNAH, Ga. (AP) — U.S. Sen. Raphael Warnock, D, Ga., urged the U.S. Treasury secretary Friday to use “maximum flexibility” in implementing a revised tax credit for Americans buying electric vehicles, a perk that Hyundai stands to lose as the automaker invests billions of dollars to... Read More

'Art of the Steal': Trump Accused of Vast Fraud in NY Suit

NEW YORK (AP) — Former President Donald Trump padded his net worth by billions of dollars and habitually misled banks... Read More

NEW YORK (AP) — Former President Donald Trump padded his net worth by billions of dollars and habitually misled banks and others about the value of prized assets like golf courses, hotels and his Mar-a-Lago estate, New York’s attorney general said Wednesday in a lawsuit that... Read More

September 19, 2022
by TWN Staff
Family Dollar Initiates Voluntary Recall of Colgate Products

CHARLOTTE, N.C. — Family Dollar is initiating a voluntary product recall of Colgate mouthwash and toothpaste that were shipped and... Read More

CHARLOTTE, N.C. — Family Dollar is initiating a voluntary product recall of Colgate mouthwash and toothpaste that were shipped and stored in multiple states outside of the products’ labeled temperature requirements. All of the products are subject to Food and Drug Administration regulation and were shipped... Read More

September 15, 2022
by Dan McCue
Biden Calls Tentative Railway Deal ‘A Big Win for America’

WASHINGTON — President Joe Biden made a last-minute addition to his public schedule on Thursday, inviting railroad and union leaders... Read More

WASHINGTON — President Joe Biden made a last-minute addition to his public schedule on Thursday, inviting railroad and union leaders to the White House to celebrate their averting a nationwide strike that could have crippled the U.S. economy. Many of those invited to the Oval Office... Read More

Biden: Tentative Railway Labor Deal Reached, Averting Strike

WASHINGTON (AP) — President Joe Biden said Thursday that a tentative railway labor agreement has been reached, averting a strike that could... Read More

WASHINGTON (AP) — President Joe Biden said Thursday that a tentative railway labor agreement has been reached, averting a strike that could have been devastating to the economy before the pivotal midterm elections. Railroads and union representatives had been in negotiations for 20 hours at the Labor Department on... Read More

News From The Well