Pfizer (NYSE:PFE) inks a deal to acquire Array BioPharma (NASDAQ:ARRY) for a total enterprise value of ~$11.4B.
Pfizer agreed to acquire Array for $48 per share in cash in the deal that has already been approved by the boards of both companies
The addition of Array Biopharma is expected to strengthen Pfizer’s biopharmaceutical business and is anticipated to accelerate its growth trajectory particularly in the long term
The deal is also seen expanding Pfizer’s pipeline with multiple high-potential targeted investigational cancer therapies and adds a large portfolio of royalty-generating out-licensed medicines
“The proposed acquisition of Array strengthens our innovative biopharmaceutical business, is expected to enhance its long-term growth trajectory, and sets the stage to create a potentially industry-leading franchise for colorectal cancer alongside Pfizer’s existing expertise in breast and prostate cancers,” says Pfizer CEO Albert Bourla.
Pfizer expects to finance the majority of the transaction with debt and the balance with existing cash.
The transaction is expected to be dilutive to Pfizer’s EPS by $0.04 -$0.05 in 2019, $0.04 -$0.05 in 2020, neutral in 2021 and accretive beginning in 2022, with additional accretion and growth anticipated thereafter.
PFE +0.28% premarket to $42.88. ARRY +60.4% premarket to $47.45.
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