One of the biggest small movers on today’s market is Array Biopharma, decidedly not a household name, but a firm that is making headway in innovative cancer treatment.
Marketinsider’s Daniel Strauss reports the stock price of this smaller cancer drug research company spiked over 50% on a Pfizer offer of $11 billion for the biotechnology firm.
It’s a bright spot in a market plagued by trade concerns, where major tech firms are also under analysis by regulators.
Pfizer is making more than one play to broaden its catalog of pharma businesses after also purchasing Teracon for $340 million dollars last month.
“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,” Albert Bourla, chief executive officer of Pfizer, said in a recent press statement.
Pfizer is making more than one play to broaden its catalog of pharma businesses after also purchasing Teracon for $340 million dollars last month.
In the Strauss piece, Varun Kumar at Cantor Fitzgerald discusses some of the characteristics that Pfizer, along with other big drug firms like Eli Lilly, are looking for in acquisitions.
“A common theme associated with these companies has been a clinically de-risked asset in late-stage trials and/or relatively well-defined commercial opportunities in a niche market,” Kumar said.
ARRY has a reputation of working with other firms to develop groundbreaking treatments for cancer.
In 2018, the European Commission approved drugs related to the firm’s research for the treatment of metastatic melanoma.
Investors who want to buck a wild market with these specific types of gains are often well served by getting into “penny stock” territory in a niche like biotech, rooting out news that may be going unnoticed by big players, and making deliberate moves. ARRY holders are looking pretty good right now.
