Pfizer confirms $5.4B acquisition of Global Blood Therapeutics
Drug manufacturer Pfizer confirmed its plans to acquire Global Blood Therapeutics for the purchase price of $5.4 billion.
The deal brings together one of the biggest pharmaceutical companies in the United States with a biopharmaceutical company specializing in blood disorders. Pfizer agreed to acquire Global Blood Therapeutics (GBT) for $68.50 per share in cash, and the board of directors of both companies have approved the deal unanimously. Pfizer also sees the deal as complementary to its work in hematology, particularly sickle cell disease (SCD), which GBT has focused on to develop treatments in the space.
SCD, an inherited blood disorder, is more prevalent in populations of African, Middle Eastern and South Asian descent. GBT developed Oxbryta (voxelotor) tablets, which directly target the root cause of SCD and were approved in the U.S. in 2019. The medicine is also approved in the European Union, United Arab Emirates, Oman and Great Britain. In 2021, net sales for the medicine reached $195 million, and Pfizer plans to accelerate distribution of the treatment in areas most affected by SCD.
GBT is also developing an oral, once-daily, next-generation sickle hemoglobin (HbS) polymerization inhibitor, GBT021601 (GBT601). The company is in Phase 2 of a three phase clinical study, and the drug has the potential “to be a best-in-class agent targeting improvement in both hemolysis and frequency of vaso-occlusive crisis (VOC),” according to Pfizer.
“Sickle cell disease is the most common inherited blood disorder, and it disproportionately affects people of African descent. We are excited to welcome GBT colleagues into Pfizer and to work together to transform the lives of patients, as we have long sought to address the needs of this underserved community,” Albert Bourla, chairman and CEO of Pfizer, said in a statement. “The deep market knowledge and scientific and clinical capabilities we have built over three decades in rare hematology will enable us to accelerate innovation for the sickle cell disease community and bring these treatments to patients as quickly as possible.”
GBT also has several other treatments in the pipeline that, if approved by the U.S. Food and Drug Administration (FDA), have the potential to reach $3 billion in worldwide peak sales combined with sales of Oxbryta.
Pfizer plans to execute the deal with cash on hand, and the transaction is subject to regulatory approvals and approval by stockholders.
The planned acquisition comes after Pfizer recently announced another major deal in pharmaceuticals with its $11.6 billion buyout of Biohaven Pharmaceuticals, the maker of migraine therapy Nurtec ODT. Pfizer also shelled out $6.7 billion to acquire Arena Pharmaceuticals earlier this year. Pfizer is one of three drug makers in the U.S. with approvals for COVID-19 vaccines. The Pfizer-BioNTech vaccine, which is administered in two doses as well as booster shots, netted Pfizer billions in 2021.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."