Pfizer splashes out $11.4 billion on acquisition

US pharma giant Pfizer (NYSE: PFE) today announced that it will acquire Array BioPharma (Nasdaq: ARRY), a commercial stage biopharmaceutical company focused on the discovery, development and commercialization of targeted small molecule medicines to treat cancer and other diseases of high unmet need, with the news sending Array’s shares spiralling nearly 60% to $47.25 in pre-market trading

Pfizer has agreed to acquire Array for $48 per share in cash, a premium of about 62% to the stock’s closing price on Friday, for a total enterprise value of approximately $11.4 billion. The boards of directors of both companies have approved the merger. Pfizer expects to complete the acquisition in the second half of 2019.

Array's portfolio includes the approved combined use of Braftovi (encorafenib) and Mektovi (binimetinib) for the treatment of BRAFV600E or BRAFV600K mutant unresectable or metastatic melanoma. The combination therapy has significant potential for long-term growth via expansion into additional areas of unmet need and is currently being investigated in over 30 clinical trials across several solid tumor indications, including the Phase III BEACON trial in BRAF-mutant metastatic colorectal cancer (mCRC).