By Kimberly Chin 

Pfizer Inc. agreed to buy Array BioPharma Inc. in a deal worth $10.64 billion, as the company looks to expand its pipeline of cancer therapies.

Pfizer said it would pay Array shareholders $48 for each of its shares outstanding in cash. The pharmaceutical company said it would fund the transaction with debt and existing cash.

Shares of Array climbed 60% while Pfizer was off 0.14% in premarket trading.

Array's portfolio includes Braftovi and Mektovi, which have been approved for combined use in the treatment of metastatic melanoma. The combined therapy is currently being tested in more than 30 clinical trials for other tumor-related diseases, such as metastatic colorectal cancer.

An estimated 140,250 patients were diagnosed with cancer of the colon and rectum in 2018, with roughly 50,000 people dying from the disease annually, Pfizer said.

"The proposed acquisition of Array strengthens our innovative biopharmaceutical business, is expected to enhance its long-term growth trajectory, and sets the stage to create a potentially industry-leading franchise for colorectal cancer alongside Pfizer's existing expertise in breast and prostate cancers," Pfizer Chief Executive Albert Bourla said in prepared remarks.

Upon the deal's closing, Array will be a part of Pfizer's oncology research and development network.

The New York company said it expects the transaction to hit adjusted per-share earnings by 4 cents to 5 cents in 2019 and 4 cents to 5 cents in 2020. Pfizer expects to the deal to add to earnings at the beginning of 2022.

Pfizer expects the deal, which is worth $11.4 billion including debt, to be completed in the second half of the year.

Write to Kimberly Chin at kimberly.chin@wsj.com

 

(END) Dow Jones Newswires

June 17, 2019 08:10 ET (12:10 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
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