Pfizer To Acquire Crisaborole Developer Anacor Pharma In $5.2 Bln Deal

(RTTNews) - Drug giant Pfizer Inc. (PFE) Monday announced its agreement to acquire Anacor Pharmaceuticals, Inc. (ANAC), the developer of atopic dermatitis drug crisaborole, for $99.25 per Anacor share, in cash. The total transaction value, net of cash, is approximately $5.2 billion, which assumes the conversion of Anacor's outstanding convertible notes. In pre-market activity on Nasdaq, Anacor shares were gaining around 54 percent to trade at $98.55.

Pfizer noted that Crisaborole is a differentiated asset with compelling clinical data that, if approved, has the potential to be an important first-line treatment option. Pfizer believes peak year sales for crisaborole have the potential to reach or exceed $2 billion.

The transaction is expected to be slightly dilutive to adjusted earnings per share in 2017 with accretion to adjusted earnings per share beginning in 2018 and increasing thereafter.

The Boards of Directors of both companies have unanimously approved the transaction. Under the merger deal terms, a subsidiary of Pfizer will commence a cash tender offer to purchase Anacor common stock.

The closing of the tender offer is subject to customary closing conditions. Pfizer expects to complete the acquisition in the third-quarter 2016.

As per the merger deal, Pfizer will acquire any shares of Anacor that are not tendered into the offer through a second-step merger.

Anacor's flagship asset, crisaborole, a differentiated non-steroidal topical PDE4 inhibitor with anti-inflammatory properties, is currently under review by the U.S. FDA for the treatment of mild-to-moderate atopic dermatitis, commonly referred to as eczema.

In March 2016, the FDA accepted for review Anacor's New Drug Application seeking approval of crisaborole for the potential treatment of mild-to-moderate atopic dermatitis in children and adults. The Prescription Drug User Fee Act or PDUFA goal date for the completion of the FDA's review is January 7, 2017.

Anacor also holds the rights to Kerydin, a topical treatment for onychomycosis (toenail fungus) that is distributed and commercialized by Sandoz Inc. in the U.S.

Pfizer anticipates financing the deal through existing cash. Pfizer does not expect the transaction to impact its current 2016 financial guidance.

Albert Bourla of Pfizer said, "Anacor will be a strong fit with Pfizer's innovative business, further supporting our strategic focus on Inflammation and Immunology, and is expected to enhance near-term revenue growth for the innovative business."

In the deal, Pfizer's financial advisers were Centerview Partners and Guggenheim Securities, while Citi served as Anacor's financial adviser.