Today In The News: Pfizer Inc. On An Acquisition Roll

Pfizer Inc.

Pfizer Inc. (NYSE:PFE) announced today that it will acquire Anacor (NASDAQ:ANAC) for US$5.2bn

After terminating two mega deals in a row (the failed hostile takeover of AstraZeneca (LON:AZN) and the blocked merger with Allergan (NYSE:AGN)), Pfizer Inc. is back at the acquisition table, this time with a less financially ambitious target, Anacor Pharmaceuticals. The main strategic reason for the purchase is crisaborole, a product developed by Anacor that treats eczema.

Anacor’s stock was up 55% on the news earlier this morning, only a few cents below the offer of US$99.25/share in cash, and did not represent any material arbitrage opportunity as investors bet on a high likeliness of closing.

At the time of writing, Anacor’s share price is interestingly slightly above the offer price, which may indicate that the market is not entirely dismissing a potential higher offer for Anacor by say, Allergan or Novartis (VTX:NVN), as some analysts had guessed. Pfizer Inc.’s share price remained largely unchanged, although up from early trading when shares opened in the red.

Disclosure: No position in any of the stocks mentioned in this article.

This article expresses an opinion and the author does not receive compensation for it and has no business relationship with any company whose stock is mentioned in this article; do your own due diligence before making investment decisions.

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