(Reuters) – Pfizer Inc. announced Monday the acquisition of Array Biopharma Inc. for $ 10.64 billion, giving it access to target-approved drugs for skin cancer and targeted anti-cancer drugs in transit.
The offer of $ 48 per share Array represents a premium of about 62% over the closing of the action on Friday. Array shares jumped 56% in pre-market light trade.
Pfizer invests in cancer drugs and gene therapies in the face of competition from its flagship pain medication Lyrica.
Last year, the US Food and Drug Administration approved the oral combination therapy of Array in patients with the most deadly skin cancer.
The company is also testing its triple therapy in the treatment of colorectal cancer.
"(The acquisition) paves the way for the creation of a potentially number one franchise for colorectal cancer alongside Pfizer's existing expertise in breast and prostate cancer", said President and Chief Executive Officer Albert Bourla.
Pfizer said it plans to finalize the deal in the second half of 2019.
The transaction is expected to add to earnings starting in 2022 and will have a dilutive effect on adjusted earnings per share of between 4 and 5 cents this year and 2020, said Pfizer.
(Report by Tamara Mathias in Bengaluru, edited by James Emmanuel and Sriraj Kalluvila)