It’s not quite the $100 billion-plus deals we’ve come to see from Pfizer ($PFE) in recent years, but the U.S. pharma giant has still paid a substantial sum for California dermatology biotech Anacor ($ANAC) Pharmaceuticals.
Under the deal, announced this morning, Pfizer will acquire Anacor for $99.25 per Anacor share in cash, making it worth $5.2 billion.
Pfizer will take hold of Anacor’s flagship asset crisaborole--a differentiated non-steroidal topical PDE4 inhibitor with anti-inflammatory properties, which is currently under review by the FDA for the treatment of mild-to-moderate atopic dermatitis, commonly referred to as eczema.
The drug’s PDUFA goal date is Jan. 7 next year. If approved, Pfizer believes peak-year sales for crisaborole have the potential to “reach or exceed $2 billion.”
Last year, crisaborole aced two studies on more than 1,500 patients in total, significantly beating out placebo in clearing up eczema after 29 days.
In top-line efficacy data, both trials met their primary endpoint of significantly increasing the number of patients who were eczema-free or nearly so on the Investigator's Static Global Assessment scale, with a minimum improvement of two grades for about 32% of patients.
And on a secondary goal, roughly half of volunteers treated with crisaborole in both studies were clear or almost clear regardless of where they started on the scale.
Pfizer will buy into an area which has seen a spike in interest from pharma in recent years, with partners Regeneron ($REGN) and Sanofi ($SNY) having been working through a Phase III program with their injected eczema antibody treatment dupilumab.
It recently produced some stellar data and is set for an FDA review this year, with the Big Pharma partners believing blockbuster peak sales could exceed $2.5 billion a year--with some optimistic buy-siders pushing their peak estimates as high as $4 billion to $5 billion.
Meanwhile, Celgene ($CELG) is in the midst of Phase II development in hopes of getting the oral Otezla--already approved for arthritis and psoriasis--cleared to treat eczema. Around 18 million to 25 million people are estimated to have the condition in the U.S. alone, making it a large and potentially lucrative market that has not seen an NME approved in 15 years.
As well as its eczema treatment, Anacor also holds the rights to Kerydin, a topical treatment for onychomycosis (toenail fungus) that is distributed and commercialized by Novartis’ ($NVS) Sandoz unit in the U.S.
Albert Bourla, group president of Pfizer’s global innovative pharma and global vaccines, oncology and consumer healthcare businesses, 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.
“Our dedicated Inflammation and Immunology group has strong existing in-market franchises with Enbrel and Xeljanz, as well as a robust mid-stage pipeline, and this acquisition has the potential to add a near-term U.S. product launch. We believe we are well positioned to maximize crisaborole’s commercial potential through our strong relationships with pediatricians and primary care physicians.”
The Californian biotech released its Q1 financials just last week, showing revenue was up to $17.53 million (including research contracts)--growing from the $15.26 million in sales the company made in the year-before period.
“Today marks the beginning of an exciting new chapter for Anacor, which we believe will deliver significant value to our shareholders,” said Paul Berns, Anacor’s chairman and CEO.
“We have a deep respect for Pfizer, and it is clear that they share our commitment to addressing the significant unmet medical needs in inflammatory disease. We are proud of the innovative company that our team has built and are confident that Pfizer will help accelerate Anacor’s important mission given the strength of its global platform and resources.”
Pfizer expects to complete the acquisition in the third quarter of 2016. The takeover comes a little over a month after the drugmaker had to abandon its $160 billion bid to buy out Allergan ($AGN) as a result of new tax rules and, as became apparent afterward, Allergan’s renewed sense of independence. This itself came two years after its $118 billion bid for AstraZeneca also fell through for similar reasons.
- check out the release