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Pfizer pays big (strategically) for a cancer drug company

Snacks / Tuesday, June 18, 2019

Pfizer really wanted these drugs... NY-based pharma giant Pfizer just dropped $10.6B for cancer drug company Array BioPharma. Pfizer wanted Array so badly that it offered $48 cash per share to buy out the whole company — That's 62% higher than Array's stock was trading on Friday.

2 cancer-crushing future money-makers... That's what Pfizer gets. Braftovi and Mektovi are both approved to treat skin cancer, including melanoma. Pending the results of a couple other studies, they could treat colon and rectal cancer patients, too. Guess how much each of those drugs cost per month — $11K. That adds up over the life of a cancer survivor.

Life-saving monopoly drugs are good business... Life-improving non-monopoly drugs aren't so much. Pfizer got famous with erection-helping Viagra and cholesterol-hating Lipitor. Both face competition now that their patents expired (online disruptors, like Hims and Roman, copied the generic versions). That's why Pfizer's buying up these life-saving cancer drugs.

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