Pfizer to buy Array BioPharma in $11.4 billion deal

Pfizer has purchased Array BioPharma in a deal worth $11.4 billion that will be financed by cash and debt. Array BioPharma’s share price soared 56% after the acquisition.

Pfizer’s Array BioPharma acquisition details

Pfizer is the largest drugmaker in the US and Array BioPharma is a biopharmaceutical startup that is developing cancer treatments that target mutations found in a wide variety of tumors. Pfizer bought Array BioPharma to expand its cancer drug portfolio.

Two of Array BioPharma’s medications, Braftovi and Mektovi, have been approved by the US Food and Drug Administration (FDA) to treat late-stage melanoma. Pfizer will get royalties from future Braftovi and Mektovi revenue as part of the deal.

Pfizer and Array BioPharma comment on acquisition

Pfizer chief executive officer (CEO), Albert Bourla, explained the benefits of the acquisition of Array BioPharma.

‘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,’ said Bourla in a statement.

‘[The deal] reinforces our commitment to deploy our capital to bring breakthroughs that change patients' lives,’ added Bourla.

Ron Squarer, Array’s chief executive officer (CEO), also touted the deal with Pfizer.

‘We are incredibly proud that Pfizer has recognised the value Array has brought to patients and our remarkable legacy discovering and advancing molecules with great potential to impact and extend the lives of patients in critical need,’ said Squarer.

The Pfizer acquisition of Array BioPharma is expected to be completed in late 2019.