Pfizer To Buy Crisaborole Developer Anacor Pharma For $5.2 Bln - Quick Facts

(RTTNews) - Drug giant Pfizer Inc. (PFE) Monday announced that it has entered into a definitive merger agreement to acquire Anacor Pharmaceuticals, Inc. (ANAC) 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.

Under the merger deal terms, a subsidiary of Pfizer will commence a cash tender offer to purchase Anacor common stock for $99.25 per share in cash.

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

The Boards of Directors of both companies have unanimously approved the transaction.

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.

If approved, Pfizer believes peak year sales for crisaborole have the potential to reach or exceed $2.0 billion.

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.

Pfizer expects the transaction to be slightly dilutive to Adjusted Diluted Earnings Per Share in 2017 with accretion to Adjusted Diluted EPS beginning in 2018 and increasing thereafter.