$5.4 billion, buy it!

If the "chopping party" in the drug company is ranked, Pfizer will definitely be able to enter the top three, which may be "protecting three and fighting for on.

On May 10, 2022, Pfizer acquired the biotech company Biohaven for a total price of $16 billion, acquiring 2 marketed products and 5 preclinical drugs, at a price of up to $145 per sha.

Based on the closing price of $814/share the day before Biohaven was acquired, the premium for the acquisition is as high as 7

Normally, it takes a period of time to digest a large transaction of 10 billion US dolla.

On August 8, 2022, Pfizer announced that it has entered into a definitive agreement with Global Blood Therapeutics (GBT), whereby Pfizer will acquire G.

Source: Pfizer official website

1 After successive premium acquisitions, Pfizer is full of consumer desires

Pfizer's acquisition of GBT is very efficient and since.

The earliest news about a possible takeover of GBT came from a Bloomberg report on August 4, which said that a person familiar with the matter said that GBT had aroused interest in a large pharmaceutical company, and the pharmaceutical company was evaluating the acquisition with consultan.

GBT's stock price jumped 45% after the information was revealed, bringing its market value to $3 billion, while reports said the proposed acquisition price was between $5 billion and $5 billi.

Source: Bloomberg

Subsequently, the "Wall Street Journal" tracked the news on August 5, anchoring the transaction price at about $5 billi.

The momentum of the two major media has caused GBT's stock price to so.

Source: Snowball

It's hard for people to think that this is a coinciden.

As a result, after a weekend, the two parties directly reached an agreement, and did not see any desire to bargain from Pfizer, and bought it for $4 billi.

Therefore, following the acquisition of Biohaven at a premium, we have seen another premium acquisition by Pfiz.

Before Double Eleven, why is Pfizer's consumer appetite so strong?

2 Pfizer, the last asset you want to keep is cash?

"M&A" is the background color of Pfizer, but such frequent mergers and acquisitions as in the past two years are rare in Pfizer's histo.

According to the information published on Pfizer’s official website, since 2016, Pfizer has initiated 11 mergers and acquisitio.

Pfizer bought Array BioPharma for $14 billion in 2019, followed by a two-year bre.

Data source: Pfizer official website

In the past two years, Pfizer has spent close to the sum of the previous five years on mergers and acquisitio.

The reason why they were able to shoot one after another mainly comes from two new crown epidemic products - vaccines and small molecule oral dru.

The biggest difference between new crown products and other drugs is that the marketing expenses are extremely l.

Pharmaceutical companies do not need to instill product information to doctors through a large number of sales promotions, but directly purchase from the governme.

Large quantity, low cost and high amou.

This gives Pfizer a lot of cash to look for acquisition targe.

Aamir Malik, Pfizer’s chief business innovation officer, once said: “When we go to great lengths to find deal opportunities, the size of the deal is almost out of our considerati.

”

The large amount of cash has even affected Pfizer's M&A strate.

In the past, we believed that the optimal strategy for a transaction was to buy potential unmarketed drugs, saving money and high profi.

For Pfizer, saving money is not important, but spending it is importa.

Cash in hand is just paper, and it is your own money before you spend .

Taking pre-clinical or even R&D drugs as the target of mergers and acquisitions is too slow to spend money, and directly buying finished products is the best soluti.

Look for those drugs that are already on the market and have great therapeutic potential but limited sales, buy them, and make the products bigger and stronger through the strong marketing teams of multinational pharmaceutical compani.

This is true for Biohaven and G.

Biohaven's migraine product, Rimegepant, is the first FDA-approved orally disintegrating CGRP drug, a major improvement in the way it is administered compared to previous treatmen.

It is also the only drug that can treat and prevent migraine acutely at the same ti.

For Biohaven, the challenge of making it a blockbuster product is huge, requiring a lot of promotion and R&D expenses, and Biohaven's cash flow is already tight, and Pfizer's takeover is a win-win situati.

GBT is a "heavyweight player" in the blood disease tra.

The main product is the marketed Oxbryta (voxelotor), a drug for sickle cell disease (SC.

This is the first FDA-approved innovative therapy targeting the process of hemoglobin polymerization and the only SCD treatment with pediatric indications

According to the previously announced 2022H1 performance report, Pfizer earned more than $30 billion in revenue with two new crown products in the first half of the ye.

The total amount of the five acquisitions initiated in the past two years is only 2285 billion US dollars, and Pfizer should still hold a large amount of ca.

It is foreseeable that this will not be the last consumption of Pfizer in this round of "chopping hand.

3 Summary

Before the epidemic, there was a view on Pfizer, that the "big pharmaceutical company in the universe" was no longer as brilliant as it used to be, the patents of classic old drugs expired, and the sales of competitive products declin.

In the face of the rapid momentum of Roche and other R&D-led pharmaceutical companies There is no fighting ba.

In the past two years, Pfizer's series of operations have not only successfully held the "throne", but the momentum is gradually improving:

First, hold the position and stabilize the business;

Then, in the face of the intruding global public crisis, it took decisive action to seize the strongest mRNA vaccine track and simultaneously develop small molecule oral drugs;

After harvesting a lot of cash, taking advantage of the downturn in the biotech market, looking for targets and aggressively M&A;

Continue the glory by developing the potential blockbuster drug in the b.

Such a "road of redemption" is a classic, and it is also an object worthy of reference and study by all pharmaceutical compani.

At present, the Chinese pharmaceutical industry also has the status quo of the transformation of old pharmaceutical companies, but in the face of the epidemic, it has not seized the opportunity to turn around like Pfiz.

For Chinese pharmaceutical companies, is it still effective to imitate the rise of century-old pharmaceutical companies, or push R&D wildly, or keep license in?

After all, today is different from the pa.

The global R&D landscape has undergone tremendous chang.

China has become an important pole, and life sciences are also developing iteratively at a faster pa.

Perhaps, it is more meaningful to look at what these pharmaceutical companies that have completed "redemption" are doing now?

References:

https://endp.

com/pfizer-scoops-up-global-blood-therapeutics-and-its-sickle-cell-therapies-for-5-4b/

https://endp.

com/breaking-pfizer-in-hot-pursuit-of-a-5b-buyout-of-global-blood-therapeutics-report/

https://#xj4y7vzkg?sref=PaCdHFfq

Pfizer official website

Other public information