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The Pfizer-Anacor Deal: A Review

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Sep. 29 2016, Updated 6:04 p.m. ET

Pfizer-Anacor deal

On June 23, 2016, Pfizer (PFE) completed the acquisition of Anacor Pharmaceuticals (ANAC). The stock transaction is valued at $99.25 per Anacor share, resulting in a total enterprise value of ~$5.2 billion.

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What is Anacor?

Anacor is a California-based biopharmaceutical company. It is focused on developing and commercializing boron-based drugs for the treatment of various inflammatory, fungal, and bacterial diseases.

Key highlights of the deal

Key highlights of the deal were as follows:

  • Anacor’s common stock is valued at $99.25 per share
  • Pfizer completed the acquisition through its subsidiary, Quattro Merger Sub
  • Anacor’s products and pipeline are a strong fit for Pfizer’s inflammation and immunology segment
  • if Anacor’s key pipeline product Crisbarole is approved, it may be one of the most important first-line treatments for atopic dermatitis.
  • Kerydin, which is used in the treatment of onychomycosis and is another important Anacor product, is already approved by the FDA and marketed in the United States by Novartis’s (NVS) subsidiary, Sandoz
  • the Anacor acquisition is expected to increase near-term revenue growth for the innovative pharmaceuticals business segment

The transaction will also preserve the potential separation of the Innovative Health business and the Essential Health business, and the Anacor product portfolio will be a part of the Innovative Health business.

Investors could consider ETFs such as the iShares US Healthcare ETF (IHE), which holds ~8.5% of its total investments in Pfizer, ~10.2% of its investments in Johnson & Johnson (JNJ), ~8.4% in Merck and Co. (MRK), and ~5.5% in Bristol-Myers Squibb (BMY).

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