Pfizer’s announced intention to acquire Array Biopharma strengthens its innovative biopharmaceutical business and is expected to accelerate its growth trajectory particularly in the long term. The deal will strengthen category leadership in Oncology with the addition of a breakthrough combination of BRAF/MEK inhibitors under investigation for potential first-in-class therapy for patients with BRAF-mutant metastatic colorectal cancer.
The deal also expands Pfizer’s pipeline with multiple high-potential targeted investigational cancer therapies and adds a large portfolio of royalty-generating out-licensed medicines. Pfizer plans to maintain highly productive R&D unit in Boulder, Colorado to complement Pfizer’s research hubs. The total deal size is $48 per Array share in cash for a total enterprise value of approximately $11.4 billion.
For the traditional industry, this is a mind-blowing multiple: Array Biopharma generates revenues of $194 million and is projected to lose approximately $126 million. It has a large pipeline and of course, this is a primary driver for the deal.