Pfizer to Buy Anacor for $4.5 Billion

By Anne Steele 

Pfizer Inc. said Monday it would buy Anacor Pharmaceuticals Inc. in an all-cash deal worth about $4.5 billion, as it turns to smaller deals after walking away from its scuttled acquisition of Allergan PLC.

Pfizer will acquire drugmaker Anacor for $99.25 a share, a 55% premium to Friday's closing price. The companies said the deal, including debt, is valued at $5.2 billion.

Last month, Pfizer and Allergan terminated their planned $150 billion merger after the Obama administration took aim at the deal that would have moved the biggest drug company in the U.S. to Ireland to lower its taxes. Since then, Pfizer has been looking for deals of its own.

On Monday, the companies said Palo Alto-based Anacor will be a "strong fit" with New York-based Pfizer's inflammation and immunology portfolio. Anacor has no products on the market, but its flagship asset, crisaborole, is currently under review by the U.S. Food and Drug Administration for the treatment of eczema.

Pfizer said the transaction, which is expected to close in the third quarter, will not impact its guidance for the year.

Anacor shares, which have slipped 43% this year, added 54% premarket to $98.70. Pfizer shares were inactive.

Write to Anne Steele at [e-mail]

(END) Dow Jones Newswires

May 16, 2016 07:30 ET (11:30 GMT)

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