Anacor Pharmaceuticals (NYSE: ANAC)
Anacor Pharmaceuticals News & Technicals
On Monday morning before the market opened, shares of Anacor Pharmaceutical (ANAC) blasted off on news that they will be acquired by Pfizer Inc. (PFE) in a $5.2 billion cash deal. This equates to an ANAC share value of $92.25 after closing Friday at $64.03, a 44% jump in value. This should add great value to Pfizer’s bottom line in the long run and is estimated it will start adding to earnings by 2018 with the deal closing in the third quarter of this year. ANAC is known for their eczema treatment, Crisaborole, which has performed favorably in clinical studies so far with the Food and Drug Administration. Before the buyout news, analysts had an average price target of $38.43.
Looking at the chart you will see that shares have been beaten down over the past year after peaking in the summer of 2015 at $156.93. Shares have since trended lower as shorts were able to reclaim the 200-day moving average in January with share price continuing lower before finding a base at the $60 level, a 61% tumble value. Shares are looking to pop back up around their 200-day moving average that is currently sitting at $97.36 and should stay around that price range as the buy out terms are already being priced in. There probably won’t be much opportunity to trade this stock as buyouts tend to hover around the prices determined in the deal but if you’re looking for a long term value play then you may want to look at Pfizer as this should help boost their bottom line in the long run which will increase the share price.
Comments Regarding Buyout
“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,” said Albert Bourla, president of Pfizer’s global innovative pharma and vaccines, oncology and consumer healthcare businesses. (MarketWatch)
Anacor Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is focused on discovering, developing and commercializing small-molecule therapeutics derived from its boron chemistry platform. Its lead product development candidate is crisaborole topical ointment, approximately 2%, a non-steroidal topical anti-inflammatory phosphodiesterase-4 (PDE-4) inhibitor in development for the treatment of mild-to-moderate atopic dermatitis and psoriasis. Its product, KERYDIN (tavaborole) topical solution, approximately 5%, is an oxaborole antifungal approved by the United States Food and Drug Administration (FDA) for the topical treatment of onychomycosis of the toenails. It also has a pipeline of other internally discovered topical and systemic boron-based compounds in early-stages of research and development, which include AN3365. Its compound, AN5568 (SCYX-7158), is licensed to Drugs for Neglected Diseases initiative (DNDi) for the treatment of human African trypanosomiasis. (GoogleFinance)