Stocks of cancer therapy companies shot up on Monday after Pfizer Inc. announced it would acquire cancer user Array BioPharma Inc. in a deal worth up to $ 11.4 billion.
Shares of Incyte Corp.
INCY, + 5.30%
rose 5.3% on Monday afternoon, while Iovance Biotherapeutics Inc. shares
IOVA, + 14.40%
shot up 1[ads1]3% and shares in Turning Point Therapeutics Inc.
TPTX,  + 14.64%
jumped 12.6%. Stocks of Blueprint Medicines Corp.
BPMC, + 5.44%
rose about 6% and Mirati Therapeutics Inc.
MRTX, + 7.04%
shares increased by 5.4%, while SPDR S & P Biotech ETF
XBI, + 4.73%
Pfizer's acquisition "signals more deals will take place," says Jared Holz, Equity Trading Director, Jared Holz, to MarketWatch in an email, adding that the amount Pfizer paid – $ 48 per share, an almost 13% premium over Monday share price – contributes well to the potential acquisition targets. Expectations about M&A will continue to accelerate the share price of some cancer treatment companies, he said.
More about Pfizer and Array : S & P places Pfizer ratings on CreditWatch negative after the $ 11.4 billion Array deal and Array BioPharmas stock rockets after $ 11.4 billion buyout deal with Pfizer  Pfizer
PFE, + 0.05%
appears to expand its pipeline of cancer drugs with this acquisition. Array is
ARRY, + 56.17%
portfolio includes Braftovi and Mektovi, which are approved for combination in the treatment of certain advanced metastatic melanomas. The combined therapy has significant potential for long-term growth, says Pfizer and is being tested in more than 30 clinical trials for the treatment of several other cancers, including metastatic colon cancer.
Moody said in a report last week that several biopharma giants – especially Amgen Inc.
AMGN, + 1.12%
BIIB, + 1.47% Gilead Inc.
GILD, + 1.04%
and Novo Nordisk A / S