Pfizer To Buy Cancer Biotech Company Trillium For $2.3 Million
What do you do when you’re brimming with billions of dollars in new vaccine revenue? You splurge, of course!
That’s the mindset Pfizer is taking, flush with a projected $33.5 billion in vaccine revenue this year. The first purchase of the pharmaceutical giant’s shopping spree: cancer biotech company Trillium, which Pfizer announced on Monday it agreed to acquire for a hefty sum.
From Investment To Acquisition
Trillium, with its pipeline of potential cancer-fighting drugs, has been on Pfizer’s radar for some time. In September of last year, the company invested $25 million into Trillium and placed the senior VP of its oncology R&D group on Trillium’s scientific advisory board. Now, with eyes on expanding its vast drug portfolio to include advanced blood cancer treatments, Pfizer is taking the relationship to the next level.
The pharmaceutical titan will dish out $2.26 billion to acquire all the shares of Trillium it didn’t already own. And Pfizer was willing to fork over a healthy premium to get the deal done, especially considering Trillium’s somewhat rocky year thus far:
- The purchase price equates to $18.50 a share, a roughly 118% premium on Trillium’s average stock price over the past 60 days. Moreover, the stock closed at just $6.09 on Friday, making the deal a 209% premium over current shares.
- Trillium’s closing sharing price on Friday marked a 39% decline over the past 12 months and a 59% decline since the start of the year.
According to biotech acquisition database BiopharmaDive, Pfizer’s Trillium acquisition marked the third-largest premium paid (percentage-wise) on a biotech firm in the past three years. But Pfizer, with its stock up 32% this year and its coffers overflowing with jab revenue, certainly had the cash to throw around.
Burying The Lede: The Trillium acquisition may not even be the biggest headline Pfizer generates Monday. After spending the past few months with its vaccine authorized for emergency use only, Pfizer finally saw its product achieve full FDA approval — a first among COVID vaccines in the U.S.