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Pfizer makes good on Covid M&A capacity

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by Jennifer Saba via Reuters Breakingviews

Pfizer is taking its Covid-19 vaccine cash bounty and putting it to use. The U.S. drugmaker, valued at $273 billion at Friday’s market close, on Monday agreed to buy Trillium Therapeutics for $2.3 billion. 

At $18.50 per share, the price represents a more than 200% premium to Trillium’s stock price. That may seem lofty, even by the biotechnology sector’s standards, but Pfizer had already bought a $25 million stake last year and Trillium’s stock was down nearly 60% so far in 2021. 

It’s also part of Pfizer’s broader strategy to develop its portfolio, even though the present is dominated by the coronavirus: The United States gave its full official approval to the vaccine co-developed with BioNTech to be marketed as Comirnaty read more. Trillium develops treatments for blood cancers like leukemia, which represent about 6% of all cancer cases worldwide last year. Even if the virus is more tenacious than expected, Pfizer has its eye on the future. 

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