Pfizer Reportedly in Talks of $5 Billion Global Blood Therapeutics Purchase

After a string of high-figure acquisitions, Pfizer might be at it again as reports are coming in that the pharma giant is in advanced talks of purchasing Global Blood Therapeutics (GBT) for $5 billion. An official announcement could come as soon as later today when GBT reports its second-quarter results. 

Expanding its Pipeline and Products After COVID-19 Vaccine Success

Last year, Pfizer reported $81.2 billion in revenue, nearly double what it brought in the previous year. The driving force behind the drastic increase is Pfizer’s COVID-19 vaccine, which accounted for $36.7 billion of its 2021 revenue. With plenty of cash, Pfizer is looking to acquire other companies, like GBT, to expand its product line and pipeline. 

According to the Wall Street Journal, despite Pfizer’s apparent interest in the high-profile deal, GBT is still communicating with other potential bidders. Neither Pfizer nor GBT have publicly commented on the potential deal. 

If the deal comes to fruition, it would be the third billion-dollar deal Pfizer made this year. In March, Pfizer acquired Arena Pharmaceuticals for $6.7 billion to leverage its immune-inflammatory disease treatment portfolio. A few months later, Pfizer laid down $11.6 billion for Biohaven Pharmaceuticals and its migraine treatment program. 

The deal would come when plenty of other large pharma companies are expanding through acquisitions. Already this month, Amgen purchased ChemoCentryx and its autoimmune disease portfolio for $3.7 billion. Gilead also made a big purchase of Oxford University spinout, MiroBio, for $405 million. 

Related Article: Gilead Spends $405 Million In Cash to Acquire MiroBio

What GBT Brings to the Table for Pfizer

Pfizer has a massive portfolio of hundreds of approved products and over 100 candidates in various stages of development. GBT is a sickle cell disease-focused company that recently had its first and only treatment approved by the FDA.

GBT’s Oxbryta is a sickle cell disease treatment that first received the FDA nod in 2019 for children 12 and older. In December 2021, the FDA approved the drug for children between four and 11 years old. Oxbryta brought in $194.7 million for GBT by the end of 2021. The company says the COVID-19 pandemic has had a significant impact on Oxbryta’s sales and hopes that once the epidemic settles down, the drug will be even more productive. 

While Oxbryta is GBT’s most attractive asset, the San Fransisco-based company’s pipeline could also benefit Pfizer’s research and development programs in the future. GBT is studying Oxbryta for three other indications in Phase 2 and 3 trials, with a separate drug, Inclacumab, in Phase 3 trials to treat the frequency of vaso-occlusive crises, an occurrence where sickled red blood cells block blood flow, depriving tissues of oxygen. 

Pfizer’s interest in acquiring GBT is just hearsay for the time being but based on Pfizer’s recent involvement in big dealings; the purchase would come as little surprise to the industry. Until an official announcement, the industry will wait with anticipation for the next big acquisition in 2022. 

Author

Reed Slater