Pfizer to buy cancer drug developer Array for $10.64B

Pfizer Inc said on Monday it would acquire Array Biopharma Inc for $10.64 billion in cash, giving it access to the target's approved drugs for skin cancer and the targeted cancer medicines in its pipeline.

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The offer of $48 per Array share represents a premium of about 62 percent to the stock's close on Friday. Array's shares surged 56 percent in light premarket trade.

Pfizer has been investing in cancer drugs and gene therapies in the face of competition for its blockbuster pain drug Lyrica.

The U.S. Food and Drug Administration last year approved Array's oral combination treatment for use in patients with the deadliest form of skin cancer.

The company is also testing its triple combo therapy in colorectal cancer patients.

"(The acquisition) sets the stage to create a potentially industry-leading franchise for colorectal cancer alongside Pfizer's existing expertise in breast and prostate cancers," Chief Executive Officer Albert Bourla said.

Pfizer said it expects to complete the deal in the second half of 2019.

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The transaction is expected to add to earnings beginning 2022, and will be dilutive to adjusted earnings per share by between 4 and 5 cents this year and in 2020, Pfizer said.

(Reporting by Tamara Mathias in Bengaluru; Editing by James Emmanuel and Sriraj Kalluvila)