Is there a chance that another bidder will emerge to buy out Anacor Pharmaceuticals (ANAC) after its agreement with Pfizer? Last May 16, 2016, both companies announced that they signed a merger agreement. Pfizer will acquire Anacor for a $5.2 billion deal or $99.25 per share. The agreement is said to close on the third quarter of this year.
Does this mean that there is still a possibility of having another suitor to offer a higher bid for Anacor?
There are some speculations that Anacor may be receiving some new offers despite having a definitive agreement with Pfizer. If these rumors are true, then this may delay the merger or it could stop the definitive deal. A Pfizer spokesperson declined to give any comment regarding the speculations of another potential bidder for Anacor.
The spokesperson said that Pfizer does not comment on market speculations and assured the public that the accord between Pfizer and Anacor will be met as schedule which is on the third quarter.
Anacor is an attractive pharmaceutical company to bigger companies because of its flagship drug – Crisaborole. It is a non-steroidal PDE4 topical inhibitor having an anti-inflammatory property. Presently, it is under review by FDA for treating eczema or mild to moderate atopic dermatitis.
If granted by FDA, Pfizer will generate potential annual sales for crisaborole of more than $2 billion.
Pfizer said that Anacor offers an attractive opportunity to treat an unmet medical and clinical need for a large population of patients suffering atopic dermatitis.
Albert Bourla, President of Pfizer’s Global Innovative Pharma and Global Vaccines, Oncology and Consumer Healthcare Businesses, said in an interview that Anacor will be a strong addition to Pfizer’s mission of having an innovative business.
Raj Mehra, Managing Director of Auriga Capital said that the shares of biotechnology companies are undervalued as the valuations dropped to 20 to 30 percent over the past year. So he is not surprised if the merger and acquisition deals will be booming again.
Mehra also added that major pharmaceutical players are now looking for attractive acquisitions. Some of these pharmaceutical players may not be giving up on Anacor despite having a definitive agreement with Pfizer. He also noted that a new bidder may offer Anacor $120 per share which is above the offer of Pfizer.
Mehra cleared that he doesn’t have any insider’s information if there is a new bidder for Anacor. But he mentioned that he overhear some rumors that some big pharmaceutical companies are eyeing for Anacor. He also mentioned some names of Big Pharma that may be interested in acquiring Anacor, these are Celgene and Allergan.
The M & A Deals
The merger and acquisition deals are flourishing because bigger pharmaceutical companies are looking for an attractive company that will help strengthen their drug portfolios. Having more pipeline drugs means having more opportunities to generate bigger income.
The rumors of having another suitor to buyout Anacor shows how big pharmaceutical companies are serious in winning an attractive biotech company. Although, these are merely speculations, it is not far from happening.