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Pfizer shares close higher on Monday, company to acquire drug developer Trillium for $2.3 billion

Pfizer Inc (PFE) said on Monday that it had agreed to buy oncology biotechnology company Trillium Therapeutics in a deal valued at nearly $2.3 billion, as the US drug maker looks to bolster its arsenal of blood cancer therapies.

Pfizer intends to acquire all the outstanding shares of Trillium Therapeutics at a price of $18.50 in cash, while the implied equity value equals $2.26 billion. This share price level represents a 118% premium to the 60-day weighted average price.

The drug maker expects a potential success of two Trillium drugs in early to mid-term trials. These treatments utilize the human body’s immune system to treat leukemia and multiple myeloma as well as other blood cancers in a similar way to Merck’s Keytruda.

According to Andy Schmelz, global president of Pfizer’s oncology division, the acquisition “reinforces our commitment to pursue scientific breakthroughs.”

“Our extensive experience in understanding blood cancer science and our diverse knowledge base developed in a growing portfolio of eight approved and researched therapies in hematology provide us with the opportunity to push these important potential drugs to the point where they are needed. The basis of the patient,” Schmelz added.

Pfizer shares closed higher for the sixth time in the past ten trading sessions in New York on Monday. The stock went up 2.48% ($1.21) to $49.93, after touching an intraday high at $51.36. The latter has been a price level not seen since August 18th ($51.86).

Shares of Pfizer Inc have risen 35.64% so far in 2021 compared with a 19.26% gain for the benchmark index, S&P 500 (SPX).

In 2020, Pfizer Inc’s stock went down 6.05%, thus, it underperformed the S&P 500, which registered a 16.26% gain.

Analyst stock price forecast and recommendation

According to TipRanks, at least 8 out of 11 surveyed investment analysts had rated Pfizer Inc’s stock as “Hold”, while 3 – as “Buy”. The median price target on the stock stands at $46.64. is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

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