Shares of cancer therapy companies skyrocket after Pfizer's acquisition news
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, [14459006] + 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%
advanced 4.2%.
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 [19659002] 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%
Biogen Inc.
BIIB, + 1.47% Gilead Inc.
GILD, + 1.04%
and Novo Nordisk A / S
