Pfizer (NYSE:PFE) is set to acquire the U.K. biotechnology company ReViral for $525 million, including milestone payments, the company said on Thursday.
The move will provide Pfizer with access to experimental therapies developed to combat the respiratory syncytial virus (RSV), a common virus that infects the respiratory tract and leads to symptoms similar to a normal cold.
ReViral is developing four RSV therapies, two of which are currently in mid-stage studies, including its flagship therapy candidate sisunatovir.
This is the second buyout deal for Pfizer in less than six months after the U.S. biopharmaceutical giant acquired Arena Pharmaceuticals for $6.7 billion in December.
The RSV prevention market is expected to grow by 14x to $6.3 billion in the period between 2020 and 2030, according to GlobalData, urging global drugmakers to capitalize on the opportunities in this market.
BMO (TSX:BMO) analyst Evan Seigerman said that he would have liked to see something more impactful for Pfizer's nearer-term P&L. Still, he added that the ReViral acquisition doesn't prevent Pfizer from doing a bigger M&A.
With a potential of $1.5B in peak sales from these treatment assets (64M infections annually, 160k deaths globally), the company must continue with BD to expand the pipeline. We're interested in assets such as Trikafta/CF, Tepezza/Krystexxa, Vyvgart, assets in targeted oncology (adagrasib), neuroscience (Nurtec's US rights), and dermatology (e.g., Opzelura), the analyst said in a client note.
Truist analyst Robyn Karnauskas commented:
We see this acquisition of a -1) Ph1/2 POC; 2) private company; 3) with pipeline in an area of unmet need, as a potential return to M&A, especially in an environment where companies seem to face hurdles going public.
Pfizer stock closed at $52.87 yesterday.
By Senad Karaahmetovic