Pfizer plans to spend $2.26 billion to acquire blood cancer drug developer Trillium Therapeutics
American pharmaceutical giant Pfizer Inc. announced it would buy Trillium Therapeutics Inc. – Canadian developer of a blood cancer drug for $2.26 billion.
|Pfizer/BioNTech’s COVID-19 vaccine. (Photo: AFP/VNA)|
The Toronto Stock Exchange (TSX) is about to lose Canada’s most valuable biotech company after US pharmaceutical giant Pfizer Inc. announced it would buy Trillium Therapeutics Inc. — the developer of a blood cancer drug — for $2.26 billion.
Pfizer is expected to pay $18.50 per share of Trillium Therapeutics Inc – more than three times Trillium’s closing price of $6.09 per share on Aug. 20. Last year, Pfizer invested $25 million in Trillium, raising 2.3 million shares.
The deal Pfizer Inc. The purchase of Trillium Therapeutics Inc is the second-biggest deal for a Canadian biotech company, after Shire Pharmaceuticals Group PLC 20 years ago bought the developer of the AIDS drug, BioChem Pharma Inc. for $5.9 billion.
The above agreement of Pfizer Inc. will be paid in full in cash, but need to get the backing of 2/3 of Trillium’s investors.
Last month, Aurinia Pharmaceuticals Inc. – developers of drugs for lupus. formerly TSX’s most valuable biotech company, has decided to leave TSX for a listing on the Nasdaq stock exchange.
Canada’s most valuable biotech companies, including AbCellera Biologics Inc and Zymeworks Inc., are all listed on U.S. exchanges, where much of investor activity in the sector is concentrated. this.
Like many other biotech stocks, especially those of Canada-based companies, Trillium has seen its share value plummet this year: hitting a 52-week low on the 20th session. /8 and down nearly 60% from the beginning of the year to now.
The drop in biotech stock prices follows a strong rally last year, said David Martin, an analyst at Bloom Burton. That price increase caused mergers and acquisitions to stall.
Closing the trading session on August 23, Trillium’s share price increased 184.5 percent to 22.22 CAD/share. News of the Pfizer Inc – Trillium Therapeutics Inc deal also helped boost the prices of several other Canadian biotech stocks in this session.
Trillium, originally called Neurogenic Biotech Corp. At the time of its founding in 2004, was one of the few Canadian-based biotechs to have surpassed a $1 billion valuation in the past two years.
Meanwhile, Pfizer is one of the world’s most valuable pharmaceutical groups and has become a household name over the past year when it jointly developed a COVID-19 vaccine with BioNTech.
Pfizer is also a developer and marketer of pain relievers, cardiovascular, central nervous system and cancer drugs.