Pfizer Inc (PFE) - Get Pfizer Inc. Report said Monday it will buy Trillium Therapeutics (TRIL) - Get Trillium Therapeutics Inc. Report in a deal that values the immuno-oncology specialists at around $2.3 billion.
Pfizer said it will pay $18.50 per share, in cash, for the Cambridge, Mass.-based biotech, a 204% premium to the stock's Friday closing price. Pfizer invested $25 million into the group last year.
Trillium's drug portfolio includes biologics treatments that "enhance the ability of patients’ innate immune system to detect and destroy cancer cells", Pfizer said.
“Today’s announcement reinforces our commitment to pursue scientific breakthroughs with the addition of potentially best-in-class molecules to our innovative pipeline,” said Pfizer Oncology president Andy Schmeltz. “The proposed acquisition of Trillium builds on our strong track record of leadership in Oncology, enhancing our hematology portfolio as we strive to improve outcomes for people living with blood cancers around the globe."
"Our deep experience in understanding the science of blood cancers, along with the diverse knowledge base we have developed across our growing hematology portfolio of eight approved and investigational therapies, provide us with a foundation to advance these important potential medicines to patients who need them,” he added.
Pfizer shares were marked 3.5% higher early trading following news of the Trillium takeover to change hands at $50.45 each, with the stock supported by the U.S. Food & Drug Administration's decision to fully-approve its top-selling coronavirus vaccine.
Trillium shares, meanwhile, surged 187.2% to trade at $17.48 each.
Oncology sales were Pfizer's second-largest top line contributor over the three months ending in June, with revenues rising 19% from the same period last year to $3.145 billion. The division's stable includes brand such as Ibrance, its biggest seller, Inlyta and Sutent.