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Global Blood Therapeutics Shares Tick Higher After Pfizer Buy Agreed

Stock Markets Aug 08, 2022 10:00
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By Scott Kanowsky 

Investing.com -- Pfizer Inc (NYSE:PFE) has agreed to acquire California-based Global Blood Therapeutics Inc (NASDAQ:GBT) for $5.4B including debt and net of cash acquired, as the U.S. drugmaker looks to expand its pipeline of offerings by using a glut of cash built up from the sale of Covid-19 vaccines.

The transaction, which has been unanimously approved by the boards of both companies, will see Pfizer acquire all the outstanding shares of GBT for $68.40 per share in cash - a 7.3% premium on GBT's closing share price on Friday.

GBT specializes in treatments for a blood disorder known as sickle cell disease that impacts up to 100,000 people in the U.S.

“The deep market knowledge and scientific and clinical capabilities we have built over three decades in rare hematology will enable us to accelerate innovation for the sickle cell disease community and bring these treatments to patients as quickly as possible,” said Pfizer chairman and chief executive officer Albert Bourla in a statement.

Pfizer added that it plans to boost sales of GBT's Oxbryta sickle cell disease drug. It will also bring GBT's oral sickle hemoglobin polymerization inhibitor, now in Phase 2 trials, into its portfolio.

GBT becomes the latest acquisition target bagged by Pfizer, who has gone on a buying spree recently partly due to the widespread usage of the Covid vaccine it developed with German peer BioNTech.

This year, Pfizer has bought biotech firms Biohaven Pharmaceuticals and Arena Pharmaceuticals for $11.6B and $6.7B, respectively. The moves are expected to bolster the variety of treatments Pfizer can offer going forward as sales of Covid medicines are expected to slow following the pandemic.

NASDAQ-listed shares in GBT surged by more than 4% in early U.S. trading on Monday, adding to gains last week made when the Wall Street Journal first reported Pfizer was in talks to buy the company.

Global Blood Therapeutics Shares Tick Higher After Pfizer Buy Agreed
 

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