BRIEF—Pfizer said to be in talks to buy Global Blood Therapeutics

The Wall Street Journal ( link) reported that Pfizer could be in advanced talks to acquire Global Blood Therapeutics (GBT) for about $5 billion.

However, noted SVB Securities analyst Dr Andrew Berens, that M&A speculation for GBT started 8/3/2022, when Bloomberg initially reported that GBT was drawing takeover interest.

Given this speculation, GBT shares have traded up significantly (~88%) to $63.84/share since the initial report, said Dr Berens.

Overall, he believes that a ~$5 billion offer for GBT (~$65/share, fully diluted) would encompass enough premium to capture the pipeline value and growth of the company, including un-risk adjusted value for the key pipeline asset GBT601, a potential "functional cure" for sickle cell disease (SCD).

Given Pfizer's commentary around focusing acquisitions to accelerate top-line growth between 2025-2030, the potential acquisition is likely primarily driven by GBT's commercial and emerging SCD franchise (Oxbryta (voxelotor), inclacumab, and GBT601), which Dr Berens estimates could generate ~$2.7 billion in revenues by 2030.